Signing of Tri-partite MoU on audit working papers by Ministry of Finance, CSRC and SFC

3 Jul 2019

The Ministry of Finance of the People’s Republic of China (MOF), the China Securities Regulatory Commission (CSRC) and the Securities and Futures Commission (SFC) have entered into a Memorandum of Understanding (MoU) concerning the obtaining of audit working papers in the Mainland arising from the audits of Hong Kong-listed Mainland companies.

The tri-partite MOU was signed in Bejing today. MOF’s vice minister Ms Cheng Lihua and SFC’s Chief Executive Officer Mr Ashley Alder each delivered speeches. CSRC’s vice chairman Mr Fang Xinghai delivered his speech in written form.

The cooperation agreed by the three parties under the MoU will facilitate the SFC’s access to audit working papers – created by Hong Kong accounting firms in their audits and kept in the Mainland – when conducting investigations into Mainland-based issuers or listed companies, and their related entities or persons. Under the MoU, the MOF and the CSRC will provide the fullest assistance in response to SFC’s requests for investigative assistance regarding the provision of audit working papers. 

“Over the years, the interdependent regulatory cooperation mechanism between the Mainland and Hong Kong has worked smoothly and achieved remarkable results. The signing of the MoU will further deepen the regulatory cooperation between the two sides, helping to improve the quality of annual reports of listed entities in Hong Kong, and fully protect the legitimate interests of investors in both sides, assuring the healthy development of the accounting industry and the prosperity and stability of financial markets in both sides”, said Ms Cheng.

“The signing of the tri-partite MoU is a further refinement and perfection of existing cooperative arrangements for securities regulation between the two sides. It is an important measure to protect the legitimate interests of investors and enhance public confidence. It is also an important milestone to deepen cooperation in securities enforcement on a practical level between the two sides”, said Mr Fang.

“The tri-partite MoU is a significant milestone to enhance cooperation with the Mainland regulators in order to combat instances of misconduct among Mainland businesses listed in Hong Kong. We thank the MOF and the CSRC for their continued support,” Mr Alder said.  


A photo taken after the signing of the tri-partite MoU

Page last updated : 3 Jul 2019