Over 80 Chinese Companies Face Delisting Risk on US Stocks, Including Alibaba and Bilibili Inc

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Over 80 Chinese Companies Face Delisting Risk on US Stocks, Including JD.com adn Bilibili Inc


The United States Securities and Exchange Commission (SEC) added more than 80 companies to its list of entities facing possible expulsion from US stock exchanges. Of the 80 names, including JD.com, Pinduoduo Inc, Bilibili Inc, and NetEase Inc.

Wednesday (4/5), the SEC is known to expand the list, which consists of Chinese entities registered in the US, to a provisional lineup under the 2020 Act, known as The Holding Foreign Companies Accountable Act.


The law, signed by then-President Donald Trump, aims to remove companies with foreign jurisdiction from US exchanges if they fail to comply with American auditing standards for the third year in a row.

Other major Chinese companies added to the SEC's list include JinkoSolar Holding Co Ltd, NIO Inc, and China Petroleum & Chemical Corp.

Sources told Reuters last month that Chinese regulators had asked several US-listed companies, including Alibaba, Baidu and JD.com, to prepare more audit disclosures.

China also proposed in early April to revise confidentiality rules for companies registered in other countries. This is a move that seeks to remove legal barriers to Sino-US cooperation in audit oversight and places the onus on Chinese companies to protect state secrets.


The developments come after the US watchdog said in March it was continuing to engage with Chinese regulators about gaining access to their auditors' records, but it was unclear whether the Chinese government would grant the access required by the new US stock listing law.

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