After numerous Chinese firms getting delisted from the stock exchanges around the world or not filing their financials with SEC or their auditors resigning, and the Chinese authorities not allowing any non- Chinese regulators to conduct inspections on Chinese soil, the tentative agreement that PCAOB reached with Chinese regulatory authorities to observe the authortities during inspections of the auditing firms in China comes as a positive step. It definitely will help build some trust in the global financial community and help the Chinese companies in the long run.
This is definitely a right step and will build positive image of Chinese company’s in the investors eyes and open up the financial market for these companies.