Alibaba Group Holding Ltd. is one of the list of Chinese companies that can face Delisting, the Securities Commission and the US Exchange said on Friday, pushing e-commerce giant shares down around 9% in trading midday.
Alibaba is among more than 270 Chinese companies registered in New York identified at risk of delisting under the Holding Foreign Accountable Act (HFCAA), which is intended to overcome the long -lasting dispute over the Audit compliance of Chinese companies registered in the US.
A.S. Regulator has demanded complete access to the Audit Working Paper of Chinese companies listed in New York, which is stored in China.
While Washington and Beijing are in talks to complete disputes, KFC Operators Yum China Holdings, Biotek Beigene Ltd., Weibo Corp and JD.com are several companies that can face Delisting.
On Wednesday, SEC Chair Gary Gensler said he would not send public accounting inspector to China or Hong Kong unless Washington and Beijing could approve complete audit access.
He said the Public Company Accounting Supervisory Board, which oversees the company’s audit registered with the U.S., must be able to bring “specificity and accountability” in the audit of foreign companies registered in Wall Street.
Alibaba has until August 19 to submit evidence that refutes identification, said Sec.
The company did not immediately respond to Reuters’ comments requests.
Others were added to the list on Friday including Mogu Inc., Boqii Holding Limited, Cheetah Mobile Inc. and Highway Holdings Limited.
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