Both have been notified that they are in the first batch of Chinese firms to be inspected in Hong Kong by the Public Company Accounting Oversight Board (PCAOB), the U.S. audit watchdog, said the people.

Their respective accounting firm Deloitte and KPMG have also been informed of the audit work inspection, added the people, declining to be identified due to confidentiality constraints.

Reuters reported on Tuesday that e-commerce leader Alibaba Group Holding Ltd has also been selected.

JD.com, Yum China, KPMG and the China Securities Regulatory Commission did not respond immediately to requests for comment.

A Deloitte spokesperson said it was company policy not to comment on a specific company or client matters.

The PCAOB could not be reached for comment outside of U.S. business hours.

(Reporting by Julie Zhu; Editing by Christopher Cushing)

By Julie Zhu