China, U.S. discussing audit deal plan- sources

China and U.S. regulators are discussing operational details of an audit deal that Beijing hopes to sign this year, sources familiar with the matter said, in the latest move to keep Chinese companies listed on U.S. exchanges.

A preliminary framework for audit supervision cooperation has been formed, with China likely to classify less information as confidential, potentially allowing more information into companies' audit working papers, a source told Reuters.

China is also discussing details of onsite inspections by the Public Company Accounting Oversight Board (PCAOB), giving the U.S. audit regulator access to such papers, three sources said.