Chinese stocks delisting from U.S. exchanges 

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The risk of Chinese stocks delisting from U.S. exchanges has nearly halved after regulators reached an audit agreement, Goldman Sachs analysts said in a report Monday.

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The risk of a total or partial suspension of trading in the shares of U.S.-listed Chinese companies has declined sharply since the announcement of the agreement between the U.S. 

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Public Company Accounting Oversight Board and the China Securities Regulatory Commission, the analysts wrote in the report.

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"We estimate that the probability of a complete delisting has declined from 20 percent to 11 percent.

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While the probability of a partial delisting has declined from 28 percent to 16 percent," they said.

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The agreement will allow U.S. regulators to inspect the audits of Chinese companies for the first time, addressing a long-standing concern about the quality of Chinese accounting.

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The Goldman analysts said the agreement should help to reduce the risk of delisting for U.S.-listed Chinese companies, but they cautioned that it is "no panacea."

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"Even with this agreement in place, we believe there remains a risk that U.S. regulators could still take action against individual Chinese companies. 

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If they conclude that there are material problems with their financial reporting," they said.

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