Kudos to SEC Chairman Gary Gensler for pressuring China to allow auditors of Chinese firms listed in the U.S. to be reviewed by the SEC (“Chinese Firms Need to Open Their Books,” op-ed, Sept. 14).

China’s companies should abide by the same rules as all other U.S.-listed companies, and delisting the noncompliant is the most effective approach to make this happen. It makes little sense to threaten audit firms for not opening their books when they are professionally bound by limitations imposed by the owners of the information...

Securities and Exchange Commission Chairman Gary Gensler speaks in Washington, Sept. 14.

Photo: Evelyn Hockstein/Press Pool

Kudos to SEC Chairman Gary Gensler for pressuring China to allow auditors of Chinese firms listed in the U.S. to be reviewed by the SEC (“Chinese Firms Need to Open Their Books,” op-ed, Sept. 14).

China’s companies should abide by the same rules as all other U.S.-listed companies, and delisting the noncompliant is the most effective approach to make this happen. It makes little sense to threaten audit firms for not opening their books when they are professionally bound by limitations imposed by the owners of the information they audit. The Chinese government has prohibited auditors from providing access to their work papers for fear that proprietary information would be stolen by the SEC and passed to U.S. companies. This is a Chinese practice that is not uncommon for the U.S. companies that operate there to face.

The SEC should also look to address other areas where U.S. investors in Chinese firms may not obtain adequate financial transparency and risk-related information. U.S.-listed mutual funds investing in Chinese public companies is one example. China should not be allowed a noncompliant backdoor approach to raise funds from U.S. investors.

Joseph P. Petito

Bethesda, Md.