- The stock price of Pinduoduo Inc (NASDAQ: PDD) increased by 15.59% in the most recent trading session. This is why.
The stock price of Pinduoduo Inc (NASDAQ: PDD) increased by 15.59% in the most recent trading session. There are no company-specific reports or regulatory filings driving up the price.
Investors appear to be responding positively to a report that Chinese authorities are working on revising confidentiality rules related to offshore listings. This is considered a major step forward in resolving the disputes in the U.S. and Chinese cooperation on audit oversight.
The proposed revision would efforts in China to settle the audit dispute with the U.S., which could result in the delisting of 270 Chinese companies from U.S. stock exchanges in 2024. This new proposal removes requirements that on-site inspection of offshore listings be carried out mainly by Chinese regulators. This decision could significantly help in resolving the audit dispute after U.S. regulators demanded complete access to audit working papers of Chinese companies that are listed overseas.
The China Securities Regulatory Commission (CSRC) said that the proposal is expected to support “cross-border regulatory cooperation, including joint inspections, which will help safeguard the interest of global investors.”
Chinese and U.S. regulators had met several times. And both sides showed an interest in resolving the dispute.
The revised confidentiality rules would emphasize that Chinese companies are responsible for information security in offshore listings and this would minimize the chances of confidential information making way to auditors’ working papers.
And the draft rules now include procedural requirements, which require Chinese companies to provide a written explanation when sharing sensitive information with intermediaries like underwriters and auditors.
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