Why Shares of Alibaba, DiDi Global, and Futu Are Rising

Shares of Chinese stocks rose today on news that Chinese regulators may cooperate with U.S. financial regulators and allow them to audit the current financials of Chinese stocks listed on U.S. exchanges, potentially ending a feud that has lasted for decades.

Shares of DiDi Global (NYSE: DIDI) had risen roughly 9% and shares of Alibaba Group Holding (NYSE: BABA) traded nearly 3% higher as of 12:27 p.m. ET today. Shares of Futu Holdings (NASDAQ: FUTU) were up nearly 11.5% earlier in the day before giving back much of those gains, likely due to broader market trends.

U.S. regulators have long been frustrated with Chinese companies that trade on U.S. exchanges because they want access to audit their full and current financials. However, Chinese regulators have barred Chinese firms from sharing their working financials with foreign accountants due to national security concerns.

Source Fool.com