were rising on Wednesday after a report that the Chinese e-commerce giants are among the first companies singled out for inspection by U.S. auditors following a major bilateral agreement on financial transparency.
(YUMC) — which owns KFC, Taco Bell and Pizza Hut in the country — is among the first Chinese companies singled out by U.S. regulators for audit inspection, Reuters reported, citing anonymous sources.
Beijing and Washington reached a landmark agreement last Friday in a move that was meant to end a long-running dispute over accounting rules that apply to U.S.-listed Chinese companies and avoid their mass delisting from U.S. exchanges.
Under the agreement, US Public Company Accounting Oversight Board (PCAOB) inspectors will travel to the region to review the audits of Chinese and Hong Kong companies.
Alibaba, JD.com and
have been notified that they are among the first batch to face US inspectors, according to the report, which also said that PwC, Deloitte and KPMG – their three respective accounting firms – have also been notified.
U.S. depositary receipts from Alibaba rose 2% in premarket trade, with JD.com shares more than 2% higher. Yum China Holdings shares rose 1 percent.
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