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US-listed Chinese stocks rose on Friday after China said that it would give U.S. regulators full access to auditing reports of the majority of the 200-plus companies listed in New York as soon as mid-this year.
Bloomberg described this move as a rare concession to prevent a further decoupling between the world’s two largest economies.
Alibaba jumped 2.3%, JD.com added 2.5%, Baidu gained 6.6%, and Pinduoduo rallied 4.9% as of 1:05 p.m. ET on Friday.
Earlier in March, China signaled support for U.S.-listed Chinese companies and said regulators are progressing toward a cooperation plan on U.S.-listed Chinese stocks.
Bloomberg’s report mentioned that Chinese regulators are creating a “framework” that would let most companies stay listed in the U.S. However, certain firms with “sensitive data” could be delisted, the report said.
Earlier the U.S. Securities and Exchange Commission (SEC) had added Chinese search engine company Baidu to its list of U.S.-traded China stocks that could be delisted if American regulators are not allowed to review three years’ worth of financial audits.
CNBC reported that the China Securities Regulatory Commission had met with some accounting firms in the country, asking them to consider preparing for joint inspections.
With inputs from Bloomberg