China aims to categorize Chinese companies listed on the US stock market into three groups depending on the sensitivity of the data the firms hold, the Financial Times reported on Saturday, in bid to prevent American regulators from delisting Chinese companies.
Four unnamed people with knowledge of the matter told the Financial Times that the three-tier approach tries to bring Chinese businesses into compliance with US regulations that compel public corporations to allow regulators to inspect their audit files.
The 3 broad categories include companies with non-sensitive data, sensitive data and secretive data.
US regulators have long requested complete access to the records of US-listed Chinese firms, but Beijing, citing national security concerns, blocks international review of working papers.
Reuters reported in April that China and US officials were exploring an audit deal to keep Chinese companies on US markets.