Shares of several Chinese stocks, including Alibaba Group Holding Ltd BABA, NIO Inc NIO and Pinduoduo Inc PDD, are trading higher Monday morning following a potential rule change which would allow Chinese companies to share sensitive data with US regulators, thus lowering risk of delisting.
The China Securities Regulatory Commission on Saturday proposed revisions to rules which previously allowed only Chinese regulators to conduct on-site audit inspections of Chinese companies listed overseas. The unrevised rules forbid Chinese firms from sharing sensitive data and financial information with overseas regulators.
The changes have been proposed to "accommodate the new circumstances and developments concerning overseas securities listings and offerings."
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BABA, NIO, PDD Price Action: At time of publication, Alibaba was up 4.58% at $115.25, Nio was up 5.65% at $23.17 and Pinduoduo was up 8.6% at $46.32.
Photo: courtesy of Alibaba.
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