The China Securities Regulatory Commission published an accounting regulatory report based on a sample review of listed companies’ 2025 annual financial reports. While companies generally applied accounting standards and financial disclosure rules appropriately, the review identified errors involving revenue, financial instruments, long-term equity investments and business combinations, asset impairment and research and development expenditure. As of April 30, 5,517 listed companies had disclosed their annual reports. Among companies that filed on time, 214 received non-standard audit opinions, including 109 unmodified opinions containing emphasis-of-matter or going-concern sections, 87 qualified opinions and 18 disclaimers of opinion. The commission will follow up on identified issues and take regulatory action in accordance with applicable rules. It also plans to align supervisory approaches to common issues and strengthen practical guidance on complex accounting matters. Listed companies and accounting firms are expected to correct reporting errors and properly apply accounting and disclosure requirements.
China Securities Regulatory Commission2026-08-14
China Securities Regulatory Commission identifies accounting and disclosure errors in 2025 annual reports
The China Securities Regulatory Commission identified accounting and disclosure errors in a sample review of listed companies’ 2025 annual reports, including in revenue, financial instruments, business combinations, impairment and research and development expenditure. Of the companies filing on time, 214 received non-standard audit opinions. The commission will pursue follow-up regulatory action, align supervisory approaches and strengthen practical guidance.