Alibaba, Baidu among Chinese firms asked to boost audit disclosures: report
Alibaba, JD.com, Baidu and other Chinese U.S.-listed tech firms have been told by Chinese regulators to prepare for more audit disclosures, Reuters reported.
The move comes as the Chinese government looks to make sure these companies, which also include the likes of Pinduoduo and NetEase, stay on U.S. stock exchanges and allow U.S.-based auditors inspect these companies, the news outlet reported, citing two sources close to the situation.
Earlier this month, the China Securities Regulatory Commission and other agencies reached out to these companies and asked them to prepare audit documents for 2021.
Alibaba, JD.com, Baidu shares jumped in premarket trading on Tuesday, gaining roughly 8%, 5% and 4% to $112.05, $64.49 and $153, respectively.
The steps were taken after the U.S. Securities Exchange Commission finalized plans to delist 273 Chinese companies from U.S. exchanges in December, though at the time, it did not name them.
Last week, China’s Vice Premier Liu He made comments in an attempt to calm investor fears and said it would continue “to support various types of companies to list overseas,” noting that it would work with U.S. regulators, including the Securities and Exchange Commission on the matter.
Separately on Tuesday, Alibaba said it would enhance its buyback program to $25 billion, up from $15 billion to boost its share price.
Author: Chris Ciaccia, Seeking Alpha