The Chinese government is gearing to grant American regulators full access to the audits of US-listed firms, according to a report on Yahoo!.

  • Chinese regulators are already drafting a framework that would allow most firms to retain their listings, but have acknowledged the possibility that some state-owned corporations with sensitive data would be delisted.
  • The framework will give clear guidelines on which data may flag security concerns, with regulators weighing whether information held by firms such as Alibaba would automatically be considered in the category.
  • Sources close to the matter said officials are still discussing the details, which are subject to change, noting that they still need to be approved by top leadership. An agreement with the US is expected around summertime.
  • The development comes after the United States ordered non-compliant firms to be delisted from the New York Stock Exchange and Nasdaq by 2024 in a bid to boost transparency.

There are over 200 Chinese firms listed in New York as American Depositary shares, with an estimated $2.1 trillion in combined capitalization as of May 2021. MCHI is up 4.82%.