BEIJING — China signaled support for Chinese stocks on Wednesday, after days of worries about U.S. delisting risks sent the stocks plungingNew York, Hong Kong.

Chinese and U.S. regulators have begun to work towards a cooperative plan for U.S. listed Chinese stocks. state media said,Citing a Wednesday meeting on financial stability, chaired Tuesday by Vice Premier Liu He.

Liu also heads the central government’s finance committee and is a member of the Chinese Communist Party’s central committee politburo — the country’s second-highest circle of power.

The Chinese government supports various types of overseas listing,” the report in state media said. It was translated by CNBC. According to the article, regulators must “complete as quickly as possible” their crackdown against internet platform companies.

In Wednesday’s report the meeting stated that authorities were working towards stabilization in Hong Kong’s financial sector and struggling realty sectors.

The Hang Seng Index in Hong Kong has seen earlier gains. surging 9% Wednesday afternoon,It has rebounded from the lowest point in six years. Alibaba and Tencent in China were the tech companies that soared higher than 20%. Other major Chinese stocks also rose.

Larry Hu (chief China economist at Macquarie), stated that China’s leaders had finally broken the silence in response to recent market declines. The meeting’s tone is clear, indicating that policymakers are concerned by the market crash.

Investors’ worries about Chinese stock delistings by U.S. exchanges have increased following the resurgence in Covid-19, and the Ukraine conflict. Alex Yao, JPMorgan China Internet analysts, stated Monday that the sector was “uninvestable” over the next six- to twelve months. They also downgraded 28 stocks.

According to the U.S. Securities and Exchange Commission, last week’s statement stated: U.S.-listed securities for five Chinese companies are at risk of delisting.

The regulator was first to name specific stocks that had failed to comply with the Holding Foreign Companies Accountable Act. The 2020 act was passed by the SEC. It would permit the SEC delist Chinese companies from U.S. stock exchanges, if American regulators are unable to review audits of company accounts for at least three years consecutively.

Chinese companies have been reluctant to allow such audits due to concerns over information security in Beijing.

On Friday morning, China Securities Regulatory Commission released a statement stating that along with the Ministry of Finance it had made good progress in communicating with U.S. Public Company Accounting Oversight Board.

According to CNBC’s translation, the Chinese securities regulator stated that “We believe both sides will be able, as soon as they can, to make arrangements to cooperate in accordance with the two countries’ legal and regulatory requirements.”

An outside of office hours request for comments was not promptly answered by The PCAOB.

The Chinese government cracked down in recent years on technology firms that are accused of monopolistic practices and the high dependence on debt by real estate developers. After Beijing cracked down, investors began to be concerned about U.S. stocks that were listed on Chinese stock exchanges. DidiIt was listed in New York just days before its June 30th listing.

According to economists, February was a good month for economic growth. worst of China’s regulatory crackdown is overBeijing shifts its emphasis to supporting economic growth

Shen Bing (director-general, international affairs, China Securities Regulatory Commission) spoke to CNBC late January in an exclusive interview. commission hoped its forthcoming updated rules would help Chinese companies resume their overseas listings.