Chinese stocks were in the green on Friday after there were signals that an audit dispute between Chinese regulatory authorities and the U.S. Securities and Exchange Commission (SEC) could be resolved amicably. According to a CNBC report, the dispute arose after the SEC passed the Holding Foreign Companies Accountable Act in 2020. This Act allows the SEC to delist Chinese companies from U.S. stock exchanges if these companies fail to allow American regulators to review company audits for the past three consecutive years.
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