Delisting Fear

China will allow the PCAOB to conduct its review legally and reasonably, and this uncertainty is believed to be removed soon, said Fang Xinghai, vice chairman of the CSRC.

"This reflects the consistent openness of Chinese regulators to cross-border audit and regulatory cooperation and is in line with relevant international practices," the CSRC said.

If the plan goes ahead, it would mark an unusual reversal by Beijing, potentially ending a decades-long dispute, Bloomberg reported.

Whether the companies are actually delisted in the next two years will ultimately depend on the progress and outcome of the US-China audit and regulatory cooperation, the CSRC said.

The CSRC held a video exchange today with some US-listed Chinese companies and investment firms to hear their views on the recent situation with China-concept stocks.

Market speculation about a final agreement on accounting regulation between the PCAOB and the Chinese side is premature, local media said, citing a statement.

The two sides plan to further strengthen communication and reach arrangements as soon as possible within a framework that is consistent with their respective laws.

Chinese and US regulators have maintained good communication over regulation of US-listed Chinese companies, have made positive progress and are working to form concrete cooperation proposals.

Nio opened down 8.11 percent, Xpeng opened down 5.24 percent and Li Auto opened down 14.98 percent.

Last week, some entities chose to "be first" and this may have turned into a fire sale where institutional shareholders simply have given up on China ADRs as an asset class.