Chinese stocks surge in the U.S. market following reports of potential audit sharing by China.

Chinese stocks listed in New York surged on Friday following news that China may disclose crucial data to enable the companies to remain publicly traded in the U.S.

Chinese regulators are working to grant U.S. authorities full access to audits of Chinese companies listed in New York, Bloomberg reported on Friday. The access may be granted as early as the middle of this year, according to Bloomberg.

The China Securities Regulatory Commission met with some accounting firms in the country and advised them to prepare for joint inspections, as stated in a CNBC report.

As of 1:05 p.m. ET on Friday, the stock market jumped 2.3%, added 2.5%, gained 6.6%, and rallied 4.9%.

rose about 4%.

According to Bloomberg, Chinese regulators are establishing a framework that would allow most companies to remain listed in the U.S. However, firms with "sensitive data" may be delisted, the report stated.

The US Securities and Exchange Commission has added Chinese search engine company Baidu to its list of US-traded China stocks that could be delisted if American regulators are not allowed to review three years' worth of financial audits.

In March, China expressed support for U.S.-listed Chinese companies and announced that regulators were making progress towards a cooperation plan on U.S.-listed Chinese stocks.

In the summer of last year, Chinese regulators intensified their supervision of U.S.-listed Chinese companies. Reports indicate that Didi, a prominent Chinese ride-hailing company, was requested to delist from the U.S. just a few months after its IPO.

—CNBC’s Evelyn Cheng contributed to this report.