The Baidu Inc. logo is displayed on the company's headquarters on July 3, 2019 in Beijing, China.The Baidu Inc. logo is displayed on the company’s headquarters on July 3, 2019 in Beijing, China.

Despite signs that Chinese stocks are at less risk of being delisted from U.S. exchanges, some analysts remain pessimistic.

Global investors may be jumping the gun a little bit. Shehzad Qazi is the managing director of China Beige Book International.

In March, Chinese stocks dived then rebounded as Beijing signaled more support for its firms listed overseas.

The first half of the year had seen a 25% tumble in the China index. Most of the tech stocks in this index are listed in Hong Kong. CNBC's China ADR index, which tracks U.S.-listed Chinese stocks, has risen 25% between March and April.

Qazi told CNBC that a lot of investors are happy with the progress but not focused on the fact that there is a lot of uncertainty.

Harvey Pitt was chairman of the U.S. Securities and Exchange Commission from 2001 to 2003 The devil will be in the details.

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Pitt, who is now the CEO of Kalorama Partners, asked if people were investing in Chinese companies with their eyes open.

The shares of Chinese companies came under pressure when the SEC began to identify companies that could be delisted if they didn't comply with audit requirements. Tech giant Baidu and a fast food restaurant business were included.

On Friday, Chinese stocks jumped even more after a report that China is considering giving US authorities full access to company audits. CNBC reported that the China Securities Regulatory Commission told some accounting firms to prepare for joint inspections.

Beijing proposed revising confidentiality rules for offshore listings over the weekend, removing a legal hurdle to cooperation between both countries on audits.

Qazi said that recent rule changes in China seem to suggest a positive step forward. We don't know which companies will be able to be audited by the SEC according to U.S. rules and regulations.

If the biggest players... Are these companies going to open up their books to the U.S. regulators? If they don't, you're taking off a lot of market value.

The analysts urged investors to be cautious.

Concrete policy action to stabilizing China's property market will likely be required to sustain this market rally. Seema Shah, chief strategist at Principal, said that China's zero-COVID policy and activity restrictions will weigh on consumption and sentiment in the near-term.

China's economy has been affected by the property debt crisis. Sunac China, Shimao and Kaisa were among the stocks that the Hong Kong exchange suspended trading in.

Although China may be resuming a market-friendly stance, it is still too early to call this a new dragon market run.

According to Capital Economics, the near-term outlook for growth has deteriorated due to high oil prices and other factors.

Even if domestic policymaking does become less of a concern for investors, the war in Ukraine and China's alliance with Russia have sparked fears that the process will accelerate.

China's stock market is likely to remain under pressure even though its valuation is relatively low.