Today, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, released the statement below following news that the Public Company Accounting Oversight Board (PCAOB) determined that it has gained complete and unfettered access to be able to inspect China-based and Hong Kong-based PCAOB-registered accounting and audit firms. 

“I am pleased that after nearly two decades, the PCAOB  has gained access to inspect China-based and Hong Kong-based PCAOB-registered accounting and audit firms. Under my leadership, the Financial Services Committee has been working diligently to ensure that any company that wants to sell its securities to U.S. investors abides by U.S. laws, something that many China-based companies have been failing to do. Last Congress, I worked with Senator John Kennedy (R-LA) and Representative Brad Sherman (D-CA), to secure the bipartisan and bicameral passage of the “Holding Foreign Companies Accountable Act,” which gave China-based companies three years to comply with our regulatory requirements or be kicked off of U.S. exchanges. 

“These developments, which are being accomplished by Securities and Exchange Commission Chair Gary Gensler and PCAOB Chair Erica Williams, under the watchful eye of Congress, are welcome. But I remain cautious, as I am mindful that the People’s Republic of China has at times reneged on its commitments. U.S. regulators should be maximally empowered to fulfill their mission of investor protection and strengthening market and corporate integrity. This is why I am working with the House and Senate Leadership to ensure that Representative Sherman’s and Sen. Kennedy’s “Accelerating Holding Companies Accountable Act of 2022” is included in the omnibus. This needed legislation would shorten the grace period current law allows from three years to two years so China-based companies would remain compliant of U.S. law. 

“The bottom line is: U.S investors, working families, and retirees must be protected against fraudulent firms, and with access to reliable financial information, they can be. For our regulatory system to work effectively, it is critical that U.S. regulators have access to the information they need. The agreement signed in August and yesterday’s PCAOB determination will help ensure that the companies raising capital in the U.S. can be trusted, and that our markets remain the envy of the world.”

###