PSSI / 13 Aug 2020
In an August 10 report, PSSI critiques the five recommendations of the U.S. Presidential Working Group on Financial Markets addressing risk-related concerns regarding China.
One central fact remains: China continues to refuse to comply with U.S. securities laws, notably PCAOB audits. An invented, preferential work-around was proposed (i.e., a so-called "co-audit"), but this non-solution should be deemed unacceptable by the White House. Although PSSI appreciates some of the intent of the Working Group's recommended measures, we find that they fall woefully short of ensuring adequate U.S. investor protection, including from U.S.-sanctioned and other Chinese corporate “bad actors”.