us had been threatening to delist foreign companies whose audit papers couldnt be inspected uslisted shares of alibaba group holding ltd and nio inc were among chinese names trading higher in morning action friday after the securities and exchange commission announced that it has struck an agreement with chinese securities regulators and the countrys ministry of finance regarding the inspection of auditors based in china and hong kong the us had been threatening to eventually delist foreign companies whose audit paperwork couldnt be inspected by the public company accounting oversight board but sec chair gary gensler said in a friday statement that the agreement marks the first time we have received such detailed and specific commitments from china that they would allow pcaob inspections and investigations meeting us standards see more sec says its reached agreement to allow inspections of chinese audit firms uslisted shares of alibaba 9988hk which cracked the delisting watchlist recently were up 3 in morning trading after gaining sharply in thursdays session following a wall street journal report saying such an agreement was imminent uslisted shares of tencent music entertainment group tme was up more than 6 while shares of iqiyi inc iq were up more than 8 american depositary receipts for bilibili inc bili and jdcom inc jd were each ahead more than 2 nios adrs nio were up more than 4 while and douyu international holdings ltds doyu were up more than 6 baidus k3sdsg shares were more more than 1 while the secs agreement with chinese regulators offers some hope to us investors worried about a potential delisting of chinese stocks the arrangement doesnt remove the threat completely this agreement will be meaningful only if the pcaob actually can inspect and investigate completely audit firms in china gensler said in his statement if it cannot roughly 200 chinabased issuers will face prohibitions on trading of their securities in the us if they continue to use those audit firms