Washington and Beijing are close to an agreement that would allow US regulators access to audits of Chinese companies that are listed on American exchanges, a potential breakthrough in talks that have languished for more than a decade.
Bankers in Hong Kong were informed of a possible deal this week, according to people familiar with the matter. American depository receipts linked to shares in Chinese companies including Baidu, JD.com and Pinduoduo started trading higher on Tuesday, suggesting a resolution was in the works.
The US has demanded that Chinese companies and auditors make their financial audits available for inspection every three years by the Public Company Accounting and Oversight Board, an auditor watchdog, or face a ban from Wall Street listings.