- Major U.S.-listed Chinese companies, including Pinduoduo Inc (NASDAQ:PDD) and Full Truck Alliance Co (NYSE:YMM), have put discussions about a potential Hong Kong listing on hold.
- Recently U.S. accounting watchdog Public Company Accounting Oversight Board (PCAOB) said it had full access to inspect and investigate firms in China for the first time, Reuters reports.
- Also Read: Alibaba And Other Chinese Stocks Might Get Breather As US-China Reach Regulatory Agreement
- The statement removed the risk of around 200 Chinese companies getting kicked off U.S. stock exchanges amid rocky relations between the largest economies.
- PCAOB said it exercised sole discretion to select firms for audit and had selected two, KPMG Huazhen LLP in China and PricewaterhouseCoopers in Hong Kong.
- PCAOB staff identified "numerous potential deficiencies" in their inspection work, PCAOB Chair Erica Williams said, saying the inspection reports will be finalized and made public next year.
- In a statement, he said: "Chinese authorities will need to give PCAOB "full access for inspections and investigations in 2023 and beyond."
- Companies like Alibaba Group Holding Limited (NYSE:BABA), and JD.Com, Inc (NASDAQ:JD), have moved to also list in Hong Kong to hedge the risk of potential delisting in the U.S. due to political disputes with China.
- Price Action: PDD shares traded higher by 0.84% at $82.10 in the premarket on the last check Thursday.
- Photo: Eakrin Rasadonyindee and Visuals6x by Shutterstock
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