U.S. SEC warns against switching auditors to avoid Chinese company trading bans

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WASHINGTON (Reuters) – U.S. accounting firms that agree to lead audits of New York-listed Chinese and Hong Kong companies risk breaching U.S. rules, the U.S. Securities and Exchange Commission (SEC) warned on Tuesday.

The regulator said some Chinese and Hong Kong companies had started switching their lead auditor to a U.S. or other foreign firm to avoid potential trading bans.