(Bloomberg) Alibaba shares rose more than 6% as other major Chinese firms listed in the US gained on news that Beijing will give full access to audits of most entities to Washington.
The China Securities Regulatory Commission said that regulators on both sides are engaged in active talks on auditing cooperation with sufficient progress.
CSRC and other Chinese regulators are reportedly drafting a framework to allow the Chinese firms maintain US listings. The Chinese authorities are still accepting that some state-owned entities and private companies holding sensitive data will be delisted.
The expected framework will clarify the data that may bring national security concerns. The authorities on either side are also seeking to know if companies that process consumer information such as Alibaba fall under the category.
The details of the proposed plan are subject to change, with the Chinese regulators aiming for a consensus with Washington in the summer.
The latest development happens even as US SEC chair Gary Gensler, this week, refuted claims that a solution with China was imminent. He said that total compliance with the audit requests was the only solution.
The success of the plan is expected to mark an end to decades-long dispute between the US and China. Washington had given a 2024 deadline to kick out non-compliant companies from its stock exchanges.
More than 200 Chinese companies trade in the US stock exchanges as American Depositary shares. They carried a combined $2.1 trillion market cap as of May 2021.
BABA is up 6.4% on premarket, PDD is up 12.19%, DIDI is up 19.20%.
