By Sam Boughedda
Shares of Chinese stocks such as Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), Baidu (NASDAQ:BIDU), and Pinduoduo (NASDAQ:PDD) opened higher Friday following news that Beijing and China have reached a preliminary deal that will allow U.S. officials to review audit paperwork of Chinese companies listed in the U.S.
The move would be a step towards avoiding the delisting of some Chinese companies listed in the U.S., which had been a risk for a considerable period of time.
On Friday, statements from U.S. and Chinese regulators said China will allow the Public Company Accounting Oversight Board to access audit work papers and personnel, with the U.S. officials planning to be in China by mid-September.
It is a move in the right direction after a standoff between the two superpowers, which posed a risk to Chinese companies such as Alibaba and Baidu, which are listed on U.S. exchanges. However, it is just the first step, as the audit checks could take several months.