Securities regulators in China told CNBC they have not investigated a three-tiered system for helping Chinese companies avoid U.S. delisting.

According to sources cited by the Financial Times, China is preparing a system that would categorize U.S.-listed Chinese companies into three groups based on their data sensitivity. In the report, the system was cited as a way of enabling some Chinese companies to comply with U.S. demands for audit papers to be available for inspection.

China Securities Regulatory Commission stated that no matter where companies go public, data security and listing rules should be followed. Further information about ongoing discussions with US regulators should be released through official announcements.

Washington and Beijing are working to resolve an audit dispute that threatens U.S.-listed Chinese companies with delisting.

The U.S. Securities and Exchange Commission has named specific Chinese stocks listed in the United States that have violated the Holding Foreign Companies Accountable Act since March. In 2020, the SEC will be able to delist Chinese companies from American exchanges if American regulators cannot audit company audits for three consecutive years.