A long-standing dispute between the United States and China over the lack of transparency in Chinese public enterprises is about to be resolved. This is the first step in preventing the forced delisting of some 200 Chinese companies from US stock exchanges. The US accounting police PCAOB wants access to audit documents of Chinese companies listed in the US. The regulatory authorities of the two countries signed the preliminary agreement on Friday.
The Nasdaq Golden Dragon Index, which includes 72 U.S.-listed China stocks, has risen more than 10 percent since Thursday after rumors of an impending deal emerged. Investors had previously feared a deal could be delayed amid rising tensions between China and the US. This led to a real sell-off in China stocks in the US in March.
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