SEC Probe May Spur More Chinese Companies to Delist, Dorsey Says
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More U.S.-listed Chinese companies are under the threat of going private or being delisted after U.S. regulators accused accounting firms’ affiliates of blocking probes into potential fraud, Dorsey & Whitney LLP said.
Deloitte Touche Tohmatsu CPA Ltd., Ernst & Young Hua Ming LLP, KPMG Huazhen and PricewaterhouseCoopers Zhong Tian CPAs Ltd. have refused to cooperate with accounting investigations into nine companies whose securities are publicly traded in the U.S., the Securities and Exchange Commission said in an administrative order yesterday. BDO China Dahua Co. was also named by the SEC in the action.