By Marcus Leach
Officials from the US and China will meet this week to discuss how best to oversee the auditing of Chinese companies who are listed on the US stock markets.
Pressure on regulators in both nations has increased following accounting scandals at various Chinese firms listed in the US.
At the meeting one of the key issues to be discussed is the fact US officials want the right to investigate auditing companies in China.
However, officials from China have previously been opposed to any such deal on the basis that it is an infringement of its sovereignty. That said it is believed China may well accept a deal that allows for joint inspections.
In the last four months alone 30 US-listed Chinese companies have seen their auditors resign, with a further 20 delisted.
"I believe we share a common objective with Chinese regulators to protect investors and safeguard audit quality through our mutual co-operation," James Doty, chairman of the Public Company Accounting Oversight Board in the US, said.
He will meet his Chinese counterparts on Monday and Tuesday.
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