China Securities Regulatory Commission (CSRC) said on Thursday that both Chinese and US regulators are willing to resolve differences on audit disputes of US-listed Chinese stocks, however the final outcome depends on the stated goals of both sides. The remark came after the US regulator added five Chinese companies to a growing list of companies for possible delisting on Wednesday.

An official in charge of the international department of CSRC noted that regulators on both sides have engaged in thoughtful, respectful and productive talks.

Since Last August, Yi Huiman, chairman of CSRC and US Securities and Exchange Commission (SEC) Chair Gary Gensler have held three video conferences to discuss resolving the remaining differences in China-US audit supervision, the official said.

The Chinese side and PCAOB have had several rounds of candid, professional and efficient talks, and the communication between the two sides will continue, however, the final outcome depends on the sincerity and wisdom of both sides, the official said.

The comment followed SEC chair Gensler’s  interview on Tuesday referring to ongoing negotiations. 

“There have been thoughtful, respectful, productive conversations, but I don’t know where this is going to end up,” Gensler said in an interview on Tuesday, Bloomberg reported.

A number of US-listed Chinese companies face the risk of delisting following the implementation of the Holding Foreign Companies Accountable Act.

Whether these companies will be delisted in the next two years will ultimately depend on the progress and results of China-US audit supervision cooperation, CSRC said.

In a latest move SEC on Wednesday added five companies including Baidu Inc., Futu Holdings Limited, Nocera Inc., iQIYI Inc. and CASI Pharmaceuticals Inc. to a growing list of companies for possible delisting.

Futu said on Thursday that being on the provisional list for delisting does not mean a forced delisting in the near future.

Baidu’s New York-listed shares extended their losses to as much as 2.61 percent as of Wednesday closing while IQIYI closed 0.40 percent higher on Nasdaq.

The overall Nasdaq Golden Dragon China Index dropped 1.23 percent.

Wednesday’s additions bring the total number of Chinese firms on the possible delisting list to 11. 

The firms face removal if they fail to comply with the requirement to grant access to audit work papers for three straight years, meaning they could be kicked off the New York Stock Exchange and Nasdaq as early as 2024.