Hong Kong 's Securities and Futures Commission ( SFC ) has signed a memorandum of understanding with China 's Ministry of Finance and Securities Regulatory Commission allowing it to see audit working papers of mainland China - based firms . China , with concerns over national security , has traditionally been cagey about allowing overseas regulators access to audit documents relating to mainland companies . The MoU will allow the SFC to see documentation relating to Hong Kong - based auditors ' evaluation of mainland China companies listed , or looking to list , in the southern city . China has long been reluctant to allow overseas regulators, including those in Hong Kong, to inspect audit documents relating to mainland firms, citing national security concerns. About half of the companies listed on the Hong Kong stock exchange are mainland - China based .
Hong Kong 's Securities and Futures Commission ( SFC ) has signed a memorandum of understanding with China 's Ministry of Finance and Securities Regulatory Commission allowing it to see audit working papers of mainland China - based firms . China , with concerns over national security , has traditionally been cagey about allowing overseas regulators access to audit documents relating to mainland companies . The MoU will allow the SFC to see documentation relating to Hong Kong - based auditors ' evaluation of mainland China companies listed , or looking to list , in the southern city . About half of the companies listed on the Hong Kong stock exchange are mainland - China based .