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 , citing 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 Securities Regulatory Commission to see documentation relating to Hong Kong's -based auditors' evaluation of mainland China companies listed, or looking to list, in the southern city. at least two of the companies listed on SFC are mainland- EY had argued it could not produce the papers under Chinese laws prohibiting the spread of state secrets. Hong Kong's 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 , citing 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 Securities Regulatory Commission to see documentation relating to Hong Kong's -based auditors' evaluation of mainland China companies listed, or looking to list, in the southern city. at least two of the companies listed on SFC are mainland- Hong Kong's based.