Chinese ADRs surge after report of China authorities’ plans to give access to audits

The U.S.-listed shares of China-based companies surged in premarket trading Friday, after Bloomberg reported that Chinese authorities are in the process of giving U.S. regulators full access to auditing reports. That would allow China-based companies to remain listed on U.S. exchanges, removing an overhang that has weighed on the American depositary receipts (ADRs) of China-based companies. The iShares MSCI China ETF MCHI, +3.52% jumped 4.0% ahead of the open, after having dropped 15.7% over the past three months through Thursday while the S&P 500 SPX, +0.34% slipped 5.0%. Among the more active Chinese ADRs, shares of DiDi Group Holding Ltd. DIDI, +12.80% shot up 17.6%, Alibaba Group Holding Ltd. BABA, +1.29% rallied 7.0%, iQIYI Inc. IQ, +5.29% climbed 10.1%, NIO Inc. NIO, +4.18% rose 5.9%, Pinduoduo Inc. PDD, +6.33% hiked up 12.5% and Bilibili Inc. BILI, +7.97% ran up 12.0%.