A pedestrian walks past the Alibaba headquarters building in Beijing.
Sheldon Cooper/SOPA Images | Light rocket | Getty Images
Shares of Chinese companies publicly listed in the US rose on Wednesday as China signaled support for the stock on Wednesday.
Regulators in both countries are working on a cooperation plan for US-listed Chinese stocks, according to Chinese state media. The report mentions Wednesday’s meeting chaired by Vice Premier Liu He, who chairs China’s finance committee.
The Chinese government supports listing companies overseas and has said its crackdown on tech companies should end soon, state media said.
Alibaba shares jumped about 20%, JD.com added 24% and Pinduoduo gained more than 35% in premarket trading on Wednesday.
Chinese stocks listed in the US
The move comes as Chinese companies’ American Depositary Receipts (ADRs) were recently taken down by regulators and delisting concerns. ADRs are shares of non-US firms traded on US exchanges.
The Nasdaq Golden Dragon China Index, which tracks U.S.-listed Chinese stocks, is down 38.8% in 2022 and down 69.2% over the past 12 months.
Last week, the Securities and Exchange Commission named five US-registered ADRs of Chinese companies that do not comply with the Foreign Company Liability Act.
The law allows the Securities and Exchange Commission to delist and even ban companies from listing on US exchanges if US regulators fail to review the company’s audits for three consecutive years.
Last summer, Chinese regulators stepped up their oversight of US-listed Chinese stocks. A few months after the company’s IPO, regulators reportedly asked Chinese taxi giant Didi to delist it in the US.
— Evelyn Cheng of CNBC contributed to this report.