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Shares of Chinese companies jump amid US delisting


Apr 9, 2022 , ,
Акции китайских технологических компаний подскочили на фоне делистинга в США

Beijing may give US full access to audit data

Shares in Chinese technology companies have increased as Beijing tries to overcome a major stumbling block in its audit dispute with the United States by assuaging investor worries that their stocks may be delisted from US exchanges.

The Hang Seng Tech Index, which includes US-listed equities of such businesses, soared to 5.1 percent, its biggest level in over two weeks.

U.S. tech delisting risk puts pressure on stocks

China is considering changing a law that prohibits offshore corporations from exchanging sensitive financial information with foreign regulators.

The revisions might provide US authorities complete access to audit reports of Chinese companies listed there, potentially resolving a crucial bilateral disagreement that has been causing investors concern.

“If cross-border regulatory cooperation works smoothly as specified in the guidelines, this revision will partially address delisting risks,” Citigroup analyst Alicia Yap said.

However, other experts believe that Chinese authorities must take more dramatic measures to entirely address issues with US regulators over the delisting.

“Rather than a pipeline structure that is still under construction, we need to see or obtain some type of actual action taken by China to properly relieve investor anxieties regarding ADP delisting,” Citigroup analyst Kelvin Wong said.

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