The China Securities Regulatory Commission (CSRC) and the Ministry of Finance signed a supervision cooperation agreement with the U.S. Public Company Accounting Oversight Board (PCAOB) on Friday and would launch relevant cooperation in the near future. 

The PCAOB is a nonprofit corporation established by the U.S. Congress to oversee the audits of public companies.

An official from the CSRC told the media in a statement on its website that the agreement was established on the principle of equivalence, which means that regulators from both sides can conduct inspections following the statutory duties of relevant firms in the other country.

The official said that the scope of the assistance provided by the Chinese side also involves some Hong Kong firms that provide audit services for the Chinese concepts stocks and whose audit working papers are stored in the Chinese mainland.

The official added that the two sides would communicate and coordinate the inspection plan in advance. The U.S. side must obtain audit working papers and other documents through the Chinese regulatory authority, and conduct inquiries with the relevant personnel of the accounting firm with the participation and assistance of the Chinese side.

Keeping the Chinese concepts stocks listed in the U.S. is beneficial to investors, listed companies and both countries, the official said, adding that it's a win-win institutional arrangement.

The official said that Chinese regulators look forward to actively pushing for cooperation with their U.S. counterparts in a professional and pragmatical manner, and working together to achieve positive results.

Also on Friday, the Hong Kong Special Administrative Region's independent audit regulator, the Financial Reporting Council, said it would "render all necessary assistance and make appropriate arrangements" to support the China-U.S. cross-border collaboration.