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Speaker 1: Well, talk seem to be gathering pace here between Beijing

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Speaker 1: and Washington to avoid the de listing of Chinese companies

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Speaker 1: from New York. And what it seems to be is

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Speaker 1: that they're looking to let US inspectors travel here to

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Speaker 1: Hong Kong and review these audit papers of Chinese businesses.

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Speaker 1: Joining us now is Lu lu Chen, Bloomberg's Asia investing

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Speaker 1: and real estate team leader. So, Lulu, we're reporting this, uh,

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Speaker 1: and do we see this as a breakthrough happening or

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Speaker 1: is this just incremental progress on this story. So what

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Speaker 1: we've been told is that Chinese regulators have instructed major

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Speaker 1: accounting firms to prepare to bring the audit work papers

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Speaker 1: UM to Hong Kong where they can be reviewed by

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Speaker 1: the auditing board of the U s UM. For the US,

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Speaker 1: my understanding is that nothing has changed. The SEC has

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Speaker 1: always had a tough stance saying it's all access or

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Speaker 1: nothing UM. So the progress is really from a development

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Speaker 1: from kind of part where they are giving out these

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Speaker 1: instructions and it seems like there is some action on move. Yeah,

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Speaker 1: we've seen we've seen progress in the past, kind of dissipate.

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Speaker 1: You'd think that investors would be one bit and twice shy,

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Speaker 1: but they are they are buying into this story, and

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Speaker 1: I think it's important to report that we we don't

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Speaker 1: have any comment from the SEC. We also don't have

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Speaker 1: any comment from the China Securities Regulatory Commission. Uh So

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Speaker 1: it's it's very much up in the air. But progress

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Speaker 1: is progress, and it seems like this this is a

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Speaker 1: little bit of a breakthrough having US inspectors beyond somewhat

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Speaker 1: neutral ground in Hong Kong Um. Yeah, it does seem

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Speaker 1: like there is some progress. Something is happening, and I

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Speaker 1: can understand why there is a there is pressure to

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Speaker 1: get a deal out because the clock is ticking. Um.

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Speaker 1: The post deadline for four is going to happen if

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Speaker 1: they don't reach these agreements the end of the year. UM.

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Speaker 1: Auditing these papers will take time as well. And there's

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Speaker 1: a lot of money at risk here. As of March,

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Speaker 1: there were one point five trillion dollars worth of companies

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Speaker 1: Chinese companies listed in the US, so a lot at

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Speaker 1: stake here, Lulu. We know that Chinese companies can raise

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Speaker 1: a lot of money in Hong Kong Um and they

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Speaker 1: can raise money in China as well. Why is the

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Speaker 1: US so important to these companies. The US has always

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Speaker 1: been a more UM preferred route for Chinese companies to list,

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Speaker 1: especially for the tech companies and companies that have a

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Speaker 1: less established model, especially a less established profit model. UM.

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Speaker 1: Here in Hong Kong, you can see that the most

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Speaker 1: of the companies that do well are traditional businesses, so

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Speaker 1: that UM that sector UM, the new economy sector that

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Speaker 1: has really created some of the world's largest companies. Traditionally

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Speaker 1: most of them have been listed in the US. There's

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Speaker 1: a lot more liquidity UM in New York as well UM,

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Speaker 1: and also UM the investor composition is just a lot

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Speaker 1: more different institutional investors dominate the US UM New York

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Speaker 1: Stock Exchange in NASTAC, whereas here in Hong Kong there

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Speaker 1: there is UM less of that. So so I think

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Speaker 1: like for companies and investment banks which make a bigger fee,

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Speaker 1: the US has been the traditional preferred route. Lulu, thanks

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Speaker 1: very much for joining us. Here Live Lu lu Chen,

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Speaker 1: Bloomberg's Asia Investing and Real Estate team leader