{"id":229086,"date":"2022-08-29T14:06:04","date_gmt":"2022-08-29T19:06:04","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=229086"},"modified":"2022-08-29T14:47:51","modified_gmt":"2022-08-29T19:47:51","slug":"melco-us-listing-could-be-supported-by-pcaob-agreement","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/","title":{"rendered":"Melco Resorts Stock Could Gain Support from China Audit Accord"},"content":{"rendered":"<p>Melco Resorts &amp; Entertainment (NASDAQ: MLCO) is among the Chinese stocks trading in the US that could benefit from a new deal struck by US and Chinese regulators.<\/p>\n<figure id=\"attachment_229090\" aria-describedby=\"caption-attachment-229090\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-229090\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/COD-142x95.jpg\" alt=\"Melco US listing\" width=\"1200\" height=\"800\" \/><figcaption  id=\"caption-attachment-229090\"class=\"text-description\">Melco&#8217;s City of Dreams in Manila. The company may be able to retain its US listing. (Image: <em>Wall Street Journal<\/em>)<\/figcaption><\/figure>\n<p>Last Friday, the Public Company Accounting Oversight Board (PCAOB) reached an accord with the China Securities Regulatory Commission (CSRC) and the Ministry of Finance of the People\u2019s Republic of China. The deal is regarding audits and investigations of China- and Hong Kong-based companies that trade in the US. Melco is one of those firms.<\/p>\n<blockquote class=\"main-blockquote\"><p><strong>This agreement marks the first time we have received such detailed and specific commitments from China that they would allow PCAOB inspections and investigations meeting U.S. standards,\u201d<\/strong> said Securities and Exchange Commission (SEC) Chairman Gary Gensler in a statement. <strong>\u201cThe Chinese and we jointly agreed on the need for a framework. We were not willing to have PCAOB inspectors travel to China and Hong Kong unless there was an agreement on such a framework.\u201d<\/strong><\/p><\/blockquote>\n<p>In March, the PCAOB noted <a href=\"https:\/\/www.casino.org\/news\/melco-resorts-could-face-us-delisting-has-time-to-deal-with-it\/\">it cannot inspect Melco\u2019s audits<\/a> because Ernst &amp; Young conducts those examinations in Hong Kong, where the casino operator is based. That scenario was viewed as potentially endangering Melco\u2019s Nasdaq listing.<\/p>\n<h2>Melco Could Stave Off Delisting<\/h2>\n<p>In April, the SEC added a dozen firms to the list of Chinese companies trading in the US that could be in violation of the Holding Foreign Companies Accountable Act (HFCAA). Under the terms of the HFCAA, audits of foreign companies trading in the US <a href=\"https:\/\/www.casino.org\/news\/melco-could-face-us-delisting-if-hfcaa-compliance-isnt-reached\/\">must be scrutinized by the PCAOB<\/a>.<\/p>\n<div class=\"callout\">\n<p>The overarching theme of Chinese companies profiting from listing shares on US exchanges while not being subject to the same regulatory standards as domestic firms isn\u2019t a Melco-specific issue. Rather, the casino operator is one of many Chinese firms US policymakers and regulators worry are flouting accounting standards.<\/p>\n<\/div>\n<p><strong>So while the PCAOB\/CRSC agreement is a step in the right direction for Chinese firms, including Melco, in terms of retain US listings, there\u2019s more work to be done<\/strong>.<\/p>\n<p>\u201cMake no mistake, though: The proof will be in the pudding. While important, this framework is merely a step in the process,\u201d added Gensler. \u201cThis agreement will be meaningful only if the PCAOB actually can inspect and investigate completely audit firms in China. If it cannot, roughly 200 China-based issuers will face prohibitions on trading of their securities in the U.S. if they continue to use those audit firms.\u201d<\/p>\n<h2>What\u2019s Next for Melco<\/h2>\n<p>If Melco can\u2019t come into compliance with PCAOB standards, it\u2019d have time to rectify that situation, and it wouldn\u2019t immediately lose its Nasdaq listing.<\/p>\n<p>The casino operator could also move its headquarter to Macau from Hong Kong, because companies based in the gaming center aren\u2019t being targeted by US regulators. Speculation surfaced earlier this month <a href=\"https:\/\/www.casino.org\/news\/melco-resorts-may-move-headquarters-to-macau-to-keep-us-listing\/\">Melco is considering<\/a> such a move. Still, it\u2019s in the gaming firm\u2019s best interest to retain access to US markets.<\/p>\n<p><strong>\u201cIt\u2019s a privilege for foreign issuers to access our markets \u2014 the largest, deepest, most liquid markets in the world. Investors in US markets should be protected \u2014 and have trust in a company\u2019s financial numbers \u2014 regardless of whether an issuer is foreign or domestic. Further, if foreign issuers want access to our public capital markets, they must be on a level playing field with U.S. firms,\u201d <\/strong>concluded Gensler.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Melco Resorts &amp; Entertainment (NASDAQ: MLCO) is among the Chinese stocks trading in the US that could benefit from a new deal struck by US and Chinese regulators. Last Friday, the Public Company Accounting Oversight Board (PCAOB) reached an accord with the China Securities Regulatory Commission (CSRC) and the Ministry of Finance of the People\u2019s [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":229090,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10,13592],"tags":[81913,81903,81895],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Melco US Listing Could Be Supported by PCAOB Agreement<\/title>\n<meta name=\"description\" content=\"Melco may be able to retain US listing following US\/China agreement.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Melco US Listing Could Be Supported by PCAOB Agreement\" \/>\n<meta property=\"og:description\" content=\"Melco may be able to retain US listing following US\/China agreement.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-29T19:06:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-29T19:47:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/COD.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"853\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/\",\"url\":\"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/\",\"name\":\"Melco US Listing Could Be Supported by PCAOB Agreement\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/COD.jpg\",\"datePublished\":\"2022-08-29T19:06:04+00:00\",\"dateModified\":\"2022-08-29T19:47:51+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Melco may be able to retain US listing following US\/China agreement.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/COD.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/COD.jpg\",\"width\":1280,\"height\":853,\"caption\":\"Melco's City of Dreams in Manila. The company could see an earnings spurt.(Image: Wall Street Journal)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Asia Pacific Gaming\",\"item\":\"https:\/\/www.casino.org\/news\/asia-pacific-gaming\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Melco Resorts Stock Could Gain Support from China Audit Accord\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Melco US Listing Could Be Supported by PCAOB Agreement","description":"Melco may be able to retain US listing following US\/China agreement.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Melco US Listing Could Be Supported by PCAOB Agreement","og_description":"Melco may be able to retain US listing following US\/China agreement.","og_url":"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2022-08-29T19:06:04+00:00","article_modified_time":"2022-08-29T19:47:51+00:00","og_image":[{"width":1280,"height":853,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/COD.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/","url":"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/","name":"Melco US Listing Could Be Supported by PCAOB Agreement","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/COD.jpg","datePublished":"2022-08-29T19:06:04+00:00","dateModified":"2022-08-29T19:47:51+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Melco may be able to retain US listing following US\/China agreement.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/COD.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/COD.jpg","width":1280,"height":853,"caption":"Melco's City of Dreams in Manila. The company could see an earnings spurt.(Image: Wall Street Journal)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/melco-us-listing-could-be-supported-by-pcaob-agreement\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Asia Pacific Gaming","item":"https:\/\/www.casino.org\/news\/asia-pacific-gaming\/"},{"@type":"ListItem","position":3,"name":"Melco Resorts Stock Could Gain Support from China Audit Accord"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. 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