MOF vice minister Cheng Lihua said in the statement that the deal would “further deepen the regulatory cooperation between the two sides, helping to improve the quality of annual reports of listed entities in Hong Kong, and fully protect the legitimate interests of investors in both sides.” 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. The agreement was announced on Monday by the SFC in response to an application filed last month by China Merchants Bank (CMB), which is based in Hong Kong. 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.
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. The agreement was announced on Monday by the SFC in response to an application filed last month by China Merchants Bank (CMB), which is based in Hong Kong. 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.