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Alibaba stock rose more than 8% following the report.
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Stock in Alibaba Group and Tencent Holdings took off on Thursday after The Wall Street Journal reported that security regulators in Beijing are nearing a deal to provide access to financial audit records for U.S.-listed Chinese companies.
The report, citing sources it didn’t identify, said that arrangements are being made for accounting firms and the companies to transfer audit working papers and other data from mainland China to Hong Kong. Regulators from the Public Company Accounting Oversight Board would then travel to the city to inspect the records.
That is great news for Chinese stocks traded on U.S. markets., which have been under pressure because the Securities and Exchange Commission has threatened to delist companies that don’t fully open up their books. At least five state-owned companies, like PetroChina (PTR), have already voluntarily delisted their stocks.
After the report, Alibaba Group (ticker: BABA) was up 8.2%, Tencent (700.Hong Kong) rose 4.8%, and
JD.com
(JD) was up 11%.
Write to Karishma Vanjani at [email protected].
Source: https://www.barrons.com/articles/china-stocks-delisting-audit-pcaob-51661445550?siteid=yhoof2&yptr=yahoo