Statement on the PCAOB Agreement with China and Hong Kong

Today’s agreement between the Public Company Accounting Oversight Board (PCAOB) and the Chinese authorities is a step forward in holding China- and Hong Kong-based public companies to the same accountability standards as all other issuers that access U.S. capital markets.

For more than 15 years, authorities in China have impeded hundreds of their publicly-traded companies from fully complying with U.S. law. This is unacceptable.

These companies have gained an unfair advantage over their market competitors and no other foreign jurisdiction has evaded our regulations in this way.

For China- and Hong Kong-based public companies, the choice is simple: fully complying with U.S. law, or foregoing the privilege of raising capital in our financial markets.

Leveling the playing field between U.S. and foreign firms is vital to helping investors assess the integrity of foreign private issuers.

I remain committed to ensuring that investors benefit from the protections of our laws and that all issuers who wish to access our capital markets are held to the same regulatory standards.