Alibaba and Nio shares rise along with other Chinese names as SEC reaches review deal with China

The US-listed shares of Alibaba Group Holding Ltd and Nio Inc. Among the Chinese names that traded higher on Friday morning after the Securities and Exchange Commission announced that it had entered into an agreement with Chinese securities regulators and the country’s Ministry of Finance regarding the inspection. of auditors in China and Hong Kong.

The US was eventually threatening to write off foreign companies whose audit papers could not be scrutinized by the Public Company Accounting Oversight Board, but SEC President Gary Gensler said in a statement Friday that the agreement “represents the first time we have received such detailed details.” Specific commitments from China that they will allow PCAOB inspections and investigations that meet US standards.”

Watch more: The Securities and Exchange Commission says it has reached an agreement to allow inspections of Chinese audit firms

Alibaba BABA shares listed in the US,
-1.89%And the
Which broke the delisting watchlist recently, rose 1% in morning trading after rallying sharply in Thursday’s session after a Wall Street Journal report said such an agreement was imminent.

US-listed stock in Tencent Music Entertainment Group TME,
+ 1.40%
It rose more than 5%, while shares of iQiyi Inc. IQ,
-0.76%
It was more than 4%. JD.com Inc. American Depository Receipts. JD,
-2.23%
and Baidu Baidu Company,
-2.19%
They were more than 1% ahead.

NIO’s ADRs NIO,
-0.80%
It was more than 3%. Separately, the Chinese electric car maker said on Friday that an independent review of claims from a short seller was nearing completion, and that that review did not substantiate the negative claims.

DOYU is a subsidiary of DouYu International Holdings Ltd.
-2.29%
It was more than 5%.

While the SEC’s agreement with Chinese regulators offers some hope for US investors worried about the possibility of delisting Chinese stocks, the arrangement does not completely remove the threat.

“This agreement will only be meaningful if PCAOB is actually able to fully inspect and investigate audit firms in China,” Gensler said in his statement. “If you can’t, the roughly 200 China-based issuers will face a ban on trading their securities in the United States if they continue to use those audit firms.”

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