U.S. Audit Board Approves Rule for Naming Chinese Audit Firms (1)

The U.S. audit regulator approved a new rule that details how it would identify firms beyond the reach of its inspections and enforcement staff, a key step toward determining which companies in China and Hong Kong might face trading bars as soon as 2024.

The Public Company Accounting Oversight Board’s final three members voted unanimously Wednesday to send the rule to the Securities and Exchange Commission for review and final approval. The measure is needed to implement a 2020 law that would delist companies based in China and Hong Kong from U.S. exchanges unless the PCAOB can review the audits ...