The Ministry of Finance, China Securities Regulatory Commission (CSRC), and Securities and Futures Commission (SFC) in Hong Kong agreed on Wednesday to allow the SFC to view auditing records of mainland companies listed in Hong Kong.

Hong Kong accounting firms are required to provide the original auditing working papers, according to a statement on the Ministry of Finance website.

The agreement is part of a mechanism between the mainland and Hong Kong, which aims to protect investors in both onshore and offshore markets and to promote the healthy development of the accounting profession, said the statement.

Vice-Finance Minister Cheng Lihua said the tight regulatory cooperation is a result of deepening capital market connection between the mainland and Hong Kong and that it will also help stabilize the financial system.

SFC CEO Ashley Alder said that with support from the Ministry of Finance and the CSRC, the securities regulatory body can better crack down on illegal activities of mainland companies listed in Hong Kong.