Shares of several Chinese companies that trade on U.S. Exchanges jumped today after U.S. and Chinese financial regulators announced a preliminary agreement for a long-standing auditing dispute between the two countries.
Shares of the online education company TAL Education Group (NYSE: TAL) traded nearly 7.7% higher as of 12:07 p.m. ET today. Shares of the online used car dealer Uxin (NASDAQ: UXIN) traded roughly 5.2% higher and shares of the online tutoring company Gaotu Techedu (NYSE: GOTU) traded nearly 10% higher.
Congress created the Public Company Accounting Oversight Board (PCAOB) in 2002 to audit publicly traded companies on U.S. exchanges in order to protect investors. But the Chinese government has prevented Chinese and Hong Kong-based companies trading on U.S. exchanges from adhering to these audits, often citing data and privacy concerns.
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Why Shares of TAL Education Group, Uxin Limited, and Gaotu Techedu Are Rising Today