A deal signed by the U.S. and China last week allowing U.S. inspectors to review the audit records of U.S.-listed Chinese companies could prevent scores of firms from being booted off U.S. stock exchanges while ensuring the companies follow U.S. law.
Why it matters: There are more than 260 Chinese companies listed on U.S. exchanges, with a total worth of around $1.3 trillion. U.S. investors want access to those firms, but until now, Beijing has prioritized maintaining a tight domestic grip over company data.
