If the plan goes ahead, it would mark an unusual reversal by Beijing, potentially ending a decades-long dispute, Bloomberg reported.
Chinese authorities are preparing to give US regulators full access to the audit reports of more than 200 companies listed in New York as soon as midyear, in a rare concession to prevent further decoupling between the country and the United States, Bloomberg reported today.
The China Securities Regulatory Commission (CSRC) and other national regulators are drafting a framework that would allow most Chinese companies to retain their listing status, the report said, citing people familiar with the matter.
However, Beijing is prepared to accept that some state-owned and private companies that hold sensitive data will be delisted, according to the report.
If the plan is implemented, it would mark an unusual reversal for Beijing, potentially ending a decades-long dispute, the report said.
The compromise would also demonstrate China's willingness to balance national security concerns with the needs of investors and businesses at a time when the country's economy faces numerous challenges, the report noted.
Details are still being discussed and could change, the report said. Chinese regulators hope to reach an agreement with the US around the summer, the report said.
Delisting risk has been a key factor in the depressed valuation of Chinese companies listed abroad in the past year.
The CSRC responded yesterday after the US Securities and Exchange Commission (SEC) placed more Chinese companies on a provisional list for possible delisting earlier this week.
The CSRC said in a question-and-answer session that it understands the SEC's listing of companies at risk of delisting is a normal part of the US regulator's process for implementing the Holding Foreign Companies Accountable Act (HFCAA).
Whether the listed companies are actually delisted in the next two years will ultimately depend on the progress and results of the US-China audit and regulatory cooperation, the CSRC said.
Shares of US-listed Chinese companies rose sharply in pre-market trading Friday after the Bloomberg report was released.
Chinese securities regulator responds after more firms placed on SEC list for possible delisting