US Selects JD.com, Baidu, NetEase, Yum China After Alibaba For Audit Inspection

U.S. regulators have chosen e-commerce major JD.com, Inc J and KFC operator Yum China Holdings, Inc YUMC, among other U.S.-listed Chinese companies, for audit inspection starting next month, Reuters reports.
Both are in the first batch of Chinese firms for inspection in Hong Kong by the U.S. audit watchdog.
Baidu, Inc BIDU and NetEase, Inc NTES also feature in the audit inspection list, Bloomberg reports.
The regulators informed the accounting firm, including Deloitte, KPMG, PricewaterhouseCoopers, and Ernst & Young, of the audit work inspection.
U.S. regulators have selected Alibaba Group Holding Limited BABA and other U.S.-listed Chinese companies for audit inspections, likely to start next month.
Earlier, the U.S. audit regulator forged an agreement with Chinese regulators to inspect and investigate registered accounting firms in China and Hong Kong.
The Public Company Accounting Oversight Board (PCAOB) acknowledged it as the most detailed and prescriptive agreement the regulator has ever reached with China.
U.S. regulators have been at loggerheads with China regarding access to their audit papers.
As Beijing failed to impress U.S. regulators, Chinese e-commerce giants saw more of their shares shift to the Hong Kong market.
So far, Chinese companies listed in the U.S. dodged the regulations citing security concerns.
Price Action: JD shares traded higher by 1.80% at $62.62 in the premarket on the last check Wednesday.