(Reuters) US-listed Chinese firms, including Alibaba, JD.com, and Baidu have been told by Beijing to prepare for more audit disclosures.
The move by China’s regulator has been seen as an attempt to please the US counterparts who had asked to be allowed to inspect the audit working papers of the firms.
The firms have been asked to prepare audit documents for last year, with the Chinese regulators focusing on arresting concerns of delisting from the US exchanges.
The US-listed companies have reportedly been asked to seek clarification from Beijing if they are uncertain on anything, including how they communicate with the US regulators.
The reports are expected to calm down a long standoff between the US officials and China, with Washington warning of delisting if the companies do not provide audit records for inspection relating to three straight years.
Talks between China and the US on the disclosure requirements are reportedly still ongoing. Beijing had previously cited national security concerns in its decision to deny Washington the working papers of its firms.
JD is up 5.66%, BABA is up +10.27% on premarket, BIDU is up +5.76%.
