The China Securities Regulatory Commission and the Ministry of Finance of the People's Republic of China signed an audit and supervision cooperation agreement with the US Public Company Accounting Supervisory Board (PCAOB) on August 26, 2022, and will begin related cooperation in the near future.

The cooperation agreement is based on the laws and regulations of the two countries, respects common international practices, and makes clear agreements on relevant accounting firms to cooperate in carrying out supervisory inspection and investigation activities in accordance with the principles of reciprocity and mutual benefit, forming a cooperation framework that complies with the regulations and regulatory requirements of the two countries.

The signing of the cooperation agreement is an important step taken by the regulators of China and the US to resolve the common concern of audit and supervision cooperation, laying the foundation for the next stage of active, professional, and pragmatic promotion of cooperation between the two sides. Promoting cross-border audit and supervision cooperation in accordance with the law will help to further improve the quality of practice of accounting firms, protect the legitimate rights and interests of investors, and create a favorable international regulatory environment for enterprises to carry out cross-border listing activities in accordance with the law.