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Chinese Shares Surge as Country Weighs Giving US Access to Audits -Breaking

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – Shares and ADRs of Chinese companies were up across the board in premarket trading Friday after reports that the country may grant U.S. regulators full access to audit reports of its firms listed on American exchanges.

The Chinese authorities have so far been reluctant about allowing access. Many companies in this group could be delisted on American exchanges if they continue to resist access.

It all stems from a U.S. 2020 law, which requires that public companies grant American authorities access work papers. Non-compliance can lead to firms being delisted for the third consecutive year.

According to Securities and Exchange Commission reports, a list was prepared listing the companies refusing to grant access. The list included Baidu and its video arm iQIYI, (NASDAQ:) up 9% and 13% respectively in premarket), Yum China Holdings(NYSE:) (5%), BeiGene (NASDAQ:) (6%), Zai Lab (NASDAQ) (7%), ACM Research(NASDAQ::) (5%) Futu Holdings (NASDAQ:) (12%).

The news also had an impact on the shares of Chinese businesses, which was surprising considering that their fears about being delisted by peers had also weighed heavily on them.

ADRs Alibaba JD.com (NASDAQ) was up 6%. Pinduoduo Didi (NYSE 🙂 and (NASDAQ 🙂 saw their shares rise by 13% and 15% respectively.

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