China might make a U-turn to cease its corporations being kicked off Wall Avenue

China could make a U-turn to stop its companies being kicked off Wall Street

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The China Securities Regulatory Commission, the country’s top securities watchdog, has proposed changing a decade-old rule that forbids Chinese firms from sharing sensitive data and financial information with overseas regulators.

The amendment might allow US regulators to inspect audit reports of Chinese companies listed in New York. That could end a dispute between the two countries that threatened more than 200 Chinese firms with possible expulsion from the New York Stock Exchange or Nasdaq.

In the new draft rule published Saturday, the regulator struck out a requirement that examination of the financial documents of overseas-listed Chinese firms must be “mainly conducted by Chinese regulatory agencies.”

Instead, it says that inspections shall be “conducted through cross-border regulatory cooperation,” and the CSRC will provide assistance during the process.

The CSRC also said that all companies listed overseas will be responsible for properly managing confidential and sensitive…

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