Chinese Accounting Firms Fined $7.9 Million by U.S. for Violating Securities Laws

This marks the first enforcement settlements with Chinese and Hong Kong companies since the PCAOB gained powers to inspect and investigate these firms.

The U.S. Public Company Accounting Oversight Board (PCAOB) has fined three Chinese accounting firms a total of $7.9 million for violating U.S. securities laws and other misconduct.
PwC China and PwC Hong Kong were fined $7 million for allowing over 1,000 of their employees to share answers to tests for mandatory internal training.
Shandong Haoxin was fined $750,000 and four individuals associated with it were fined $190,000 for violating securities laws.
These are the first enforcement settlements with Chinese and Hong Kong companies since the PCAOB gained powers to inspect and investigate Chinese firms.
The PCAOB Chair Erica Y. Williams stated that 'the days of China-based firms evading accountability are over.'

South China Morning Post

Reuters

CNA