Investors Buoyed by Renewed Pressure on China to Open Audits

Investors see a renewed attempt to expedite the delisting of Chinese stocks as an effective pressure tactic to convince Beijing to finally open up corporate financial audits to U.S. regulators.

The House has advanced a provision that has support from investors and other market players that would give Chinese companies traded in the U.S. just two years to comply with American audit rules, rather than the three years called for under a 2020 securities law.

The language was included last week in a House-advanced bill that broadly addresses U.S. economic competition with China, and what may be the best option ...