Zai Lab’s Statement Regarding U.S./China Agreement Concerning PCAOB Inspection and Review of Auditors
August 26, 2022 - Zai Lab is aware of the statements made today by the China Securities Regulatory Commission (CSRC) and the U.S. Public Company Accounting Oversight Board (PCAOB) that the PCAOB signed a Statement of Protocol with the CSRC and China’s Ministry of Finance regarding the inspection and investigation of public accounting firms based in mainland China and Hong Kong. This agreement is apparently intended to provide the PCAOB with full access to inspect the work papers of auditors for Chinese companies listed on U.S. stock exchanges.
While welcoming the cooperation announced, Zai Lab confirms its beliefs that it remains fully subject to audit by its auditor, KPMG, in the U.S. and, as a result, that the PCAOB is fully able to inspect and review KPMG’s audit work papers in the U.S. relating to its audit of Zai Lab. Zai Lab believes, therefore, that it will not be directly impacted by today’s announcements or any further negotiations or agreements between the U.S. and China.
Zai Lab continues to believe it will remain listed on both the NASDAQ and Hong Kong stock exchanges.