Exclusive-JD.com, Yum China among Chinese firms chosen for U.S. audit inspection -sources

[August 31, 2022]  By Julie Zhu
 
HONG KONG (Reuters) - U.S. regulators have chosen e-commerce major JD.com Inc and KFC operator Yum China Holdings Inc among other U.S.-listed Chinese companies for audit inspection starting next month, people with direct knowledge of the matter told Reuters. 

A sign of JD.com is seen at the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. REUTERS/Aly Song

Both have been notified that they are in the first batch of Chinese firms to be inspected in Hong Kong by the Public Company Accounting Oversight Board (PCAOB), the U.S. audit watchdog, said the people.

Their respective accounting firm Deloitte and KPMG have also been informed of the audit work inspection, added the people, declining to be identified due to confidentiality constraints.

Reuters reported on Tuesday that e-commerce leader Alibaba Group Holding Ltd has also been selected.

JD.com, Yum China, KPMG and the China Securities Regulatory Commission did not respond immediately to requests for comment.

A Deloitte spokesperson said it was company policy not to comment on a specific company or client matters.

The PCAOB could not be reached for comment outside of U.S. business hours.

(Reporting by Julie Zhu; Editing by Christopher Cushing)

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