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 /zigman2/quotes/206267952/composite MCHI +3.27% jumped 4.0% ahead of the open, after having dropped 15.7% over the past three months through Thursday while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.16% slipped 5.0%. Among the more active Chinese ADRs, shares of DiDi Group Holding Ltd. shot up 17.6%, Alibaba Group Holding Ltd. /zigman2/quotes/201948298/composite BABA +14.26% rallied 7.0%, iQIYI Inc. /zigman2/quotes/203657421/composite IQ +3.90% climbed 10.1%, NIO Inc. /zigman2/quotes/204905836/composite NIO +3.02% rose 5.9%, Pinduoduo Inc. /zigman2/quotes/208876581/composite PDD +1.62% hiked up 12.5% and Bilibili Inc. /zigman2/quotes/207131615/composite BILI +2.87% ran up 12.0%.
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