CHINESE COMPANIES SHARES BOOSTED BY US-CHINA AUDIT DEAL Into Success
The rules, introduced in 2020, have deepened tensions between Washington and Beijing, which does not allow foreign regulators to inspect audits of Chinese companies
Shares of Chinese companies listed on the New York Stock Exchange posted strong gains on reports that Beijing and Washington are close to an agreement on audit access rules.
Shares of tech giant Alibaba were up 8 per cent. These companies are under threat of being delisted from the US capital markets for failing to provide access to audit filings.
The rules, introduced in 2020, have deepened tensions between Washington and Beijing, which does not allow foreign regulators to inspect audits of Chinese companies.
In April, the China Securities Regulatory Commission, which regulates the country’s financial markets, said it will change confidentiality laws, which prevent Chinese companies listed abroad from providing confidential financial information to foreign regulators.
The CSRC said the existing rules, which were last updated in 2009, are outdated.
There are about 270 Chinese companies listed in the US, with a combined market capitalization equivalent to more than two trillion euros.
The Golden Dragon China index lost about half its value last year.