To The Moon

• US watchdog says that it has been able to review audit papers
• Shares jumped after the PCAOB’s announcement on Thursday

About 200 companies based in China and Hong Kong are no longer facing an acute threat of being booted off American stock exchanges.

The US Public Company Accounting Oversight Board said its inspectors have been able to sufficiently review audit documents from firms based in the two jurisdictions. The determination diminishes the chances that companies includingAlibaba Group Holding LtdandJD.com Inc.will be delisted in New York.

Shares of US-listed China stocks jumped across the board in premarket trading.

“Inspectors and investigators were able to view complete audit work papers with all information included, and the PCAOB was able to retain information as needed,” the watchdog said in a statement.

PCAOB Chair Erica Williams told reporters after the announcement that the agency would re-assess if access started be less available.

China and Hong Kong are the only places that historically haven’t allowed the reviews, with officials citing national security and confidentiality concerns. The auditor watchdog’s announcement follows a recent high-stakes round of PCAOB inspections in Hong Kong, which represented a major break through in a long-running dispute.

The clash over audits became a political sticking point after a US law in 2020 said firms whose work papers can’t be inspected face being kicked off theNew York Stock Exchangeand Nasdaq. The legislation set a three-year timeframe for the delisting companies.

In a separate statement, SEC Chair Gary Gensler lauded the announcement. “This marks the first time that Chinese authorities allowed access for complete inspections and investigations meeting US standards,” he said in a statement, adding that inspectors must continue to be able to review the papers.