Audit Review Of US-Listed Chinese Stocks Commences - Yicai

The U.S. Public Company Accounting Oversight Board began reviewing the audit documents of Chinese companies traded on U.S. stock markets on Monday, with the first batch of companies including internet giant Alibaba, NetEase, Baidu and JD.com, Yicai.com reported. More than 160 Chinese companies have been identified by the U.S. watchdog as not complying with U.S. auditing rules. The risk of Chinese stocks being delisted from U.S. exchanges has dropped to 50% from 95% in March after China and U.S. reached an audit agreement in August. A complete elimination of delisting risk could drive the price-earnings ratio of these Chinese stocks to increase by 11%, the newspaper said citing Goldman Sachs analysts. The entire process will take 8 to 10 weeks, and the results may be available in early December 2022.