Can accounting issues with Chinese firms be resolved under Biden?

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Accounting Issues with Chinese Firms Could Be Resolved Under a Biden Administration

A senior Chinese securities regulator has expressed optimism that accounting disputes involving Chinese companies could be resolved under a future Biden administration. This sentiment was conveyed by China Securities Regulatory Commission Vice Chairman Fang Xinghai during a session at the Bloomberg New Economy Forum. The ongoing tensions between the US and China have impacted various sectors, and the resolution of these accounting matters is seen as a potential area for improvement in bilateral relations.
Hope for Improved Sino-US Relations

Fang Xinghai articulated a sincere hope that Sino-US relations would significantly improve over the course of a Biden administration, moving towards a much better state than currently exists. This statement comes at a time when US-China ties have been strained by numerous disputes, including those related to technology, trade, Hong Kong, and the global pandemic. Beijing has indicated expectations for the incoming administration to meet China halfway in managing differences and advancing bilateral ties constructively.
Potential for Resolving Accounting Disputes

The Vice Chairman specifically suggested that the accounting issues concerning Chinese firms might be resolvable under a Biden administration. This indicates a potential pathway for addressing longstanding concerns that have contributed to friction between the two economic powers. The US Securities and Exchange Commission and Treasury officials had previously urged for the delisting of Chinese companies failing to meet auditing requirements by January 2022, highlighting the significance of these accounting standards.
Ant Group IPO and Regulatory Environment

Regarding Ant Group's planned initial public offering, Fang Xinghai stated that its eventual proceed depends on the government's restructuring of the financial technology regulatory framework and the company's adaptation to evolving regulations. Ant Group has largely operated as a technology platform, leveraging its business model away from traditional banking sector regulations. However, concerns have arisen in Beijing regarding the increasing use of micro-lenders and technology platforms like Ant for loan underwriting, particularly amid fears of rising defaults and deteriorating asset quality in the pandemic-affected economy.

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Can accounting issues with Chinese firms be resolved under Biden?

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