What’s Driving US-China Spat Over Audits, Delistings: QuickTake

About 200 Chinese companies whose shares trade in the US, including JD.com Inc. and Baidu Inc., face delisting because American regulators aren’t able to verify their financial audits. While China and the US continue to negotiate access to the audits, some Chinese companies aren’t waiting to be expelled. On Aug. 12, five of the country’s largest state-owned businesses announced plans to delist from the New York Stock Exchange. Meanwhile tech giant Alibaba Group Holding Ltd. is seeking a primary listing in Hong Kong, a move that may foreshadow its own eventual exit from US markets.

1. Why does the ...