U.S.-listed Chinese stocks jump after China reportedly considers sharing company audits

Finance

A security personnel stands guard at the opening session of Baidu’s annual AI developers conference Baidu Create 2019 in Beijing, China, July 3, 2019.
Jason Lee | Reuters

New York-listed Chinese stocks jumped Friday after a report that China is considering sharing key information that would allow the firms to continue trading publicly in the U.S.

Beijing regulators are working to give U.S. authorities complete access to audits of Chinese companies listed publicly in New York, Bloomberg reported Friday. The access could come as soon as the middle of this year, according to Bloomberg.

The China Securities Regulatory Commission also told CNBC in a statement that it met with some accounting firms in the country, telling them to consider preparing for joint inspections.

Alibaba jumped 7.3%, JD.com added 4%, Baidu gained 8%, and Pinduoduo rallied 9% as of 10:20 a.m. ET on Friday.

U.S.-listed Chinese stocks

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Chinese regulators are creating a “framework” that would let most companies stay listed in the U.S., according to Bloomberg. However, certain firms with “sensitive data” could be delisted, the report said.

The move comes after the U.S. Securities and Exchange Commission 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. 

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.

Last summer, Chinese regulators stepped up their oversight on U.S.-listed Chinese stocks. Regulators reportedly asked Chinese ride-hailing giant Didi to delist from the U.S. months after the company’s IPO.

—CNBC’s Evelyn Cheng contributed to this report.

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