U.S. trading of Chinese stocks surges following China's show of support for the shares.

• The surge in shares of Chinese companies listed publicly in the U.S. on Wednesday was due to China's support for the stocks announced on the same day.
• Chinese state media reports that regulators from both countries are moving towards a cooperation plan on U.S.-listed Chinese stocks.
• Recently, the regulatory and delisting concerns have caused the ADRs of Chinese companies to experience a decline in value.

The stocks of Chinese companies listed in the U.S. experienced a rise in shares on Wednesday following China's announcement of support.

Chinese state media reported that regulators from both countries are moving towards a cooperation plan on U.S.-listed Chinese stocks, as per a meeting chaired by Vice Premier Liu He, who heads China's finance committee.

The Chinese government supports the listing of companies overseas and has stated that its crackdown on technology companies should end soon, according to state media reports.

On Wednesday, Alibaba, JD.com, and Pinduoduo all experienced significant growth, with Alibaba jumping 36.7%, JD.com adding 39.4%, and Pinduoduo rallied 56%.

Recently, American depositary receipts of Chinese companies have been underperforming due to regulatory and delisting concerns. ADRs represent non-U.S. firms traded on U.S. stock exchanges.

The Nasdaq Golden Dragon China index, which monitors the performance of U.S.-listed Chinese stocks, had decreased by 38.8% in 2022 and 69.2% in the past 12 months before Wednesday's trading session.

The Holding Foreign Companies Accountable Act saw the Securities and Exchange Commission name five U.S.-listed ADRs of Chinese companies that did not comply last week.

If American regulators cannot review company audits for three consecutive years, the SEC has the power to delist and ban companies from listing on U.S. exchanges.

In the previous summer, Chinese supervisors intensified their scrutiny of U.S.-listed Chinese enterprises. It is said that Chinese ride-hailing titan Didi was requested to withdraw from the U.S. market several months following its IPO by regulators.

— CNBC’s Evelyn Cheng contributed to this report.