U.S. SEC adds Alibaba to list of Chinese companies facing delisting risk

U.S. SEC adds Alibaba to list of Chinese companies facing delisting risk

July 29 (Reuters) – Alibaba Group Holding Ltd (9988.HK)is among a list of Chinese companies that could be delisted, the U.S. Securities and Exchange Commission said on Friday, sending shares of the e-commerce giant down about 9% by midday .

Alibaba is among more than 270 New York-listed Chinese companies identified as at risk of delisting under the Holding Foreign Companies Accountable Act (HFCAA), intended to settle a long-running compliance dispute. audit of Chinese companies listed in the United States.

US regulators have demanded full access to audit working papers of New York-listed Chinese companies, which are stored in China.

Join now for FREE unlimited access to Reuters.com

As Washington and Beijing hold talks to settle the dispute, KFC operator Yum China Holdings (9987.HK)biotechnology company BeiGene Ltd (6160.HK)Weibo Corp and JD.Com are among the companies that could face delisting.

On Wednesday, SEC Chairman Gary Gensler said he would not send public accounting inspectors to China or Hong Kong unless Washington and Beijing can agree on full access to auditing.

He said the Public Company Accounting Oversight Board, which oversees audits of U.S.-listed companies, should be able to bring “specificity and accountability” to audits of foreign companies listed on Wall Street.

Alibaba has until August 19 to submit evidence disputing the identification, the SEC said.

The company did not immediately respond to a request for comment from Reuters.

Others added to the list on Friday include Mogu Inc. (MOGU.N)Boqii Holding Limited (BQ.N)Cheetah Mobile Inc and Highway Holdings Limited (HIHO.O).

Join now for FREE unlimited access to Reuters.com

Reporting by Nivedita Balu in Bengaluru; Editing by Krishna Chandra Eluri

Our standards: The Thomson Reuters Trust Principles.

.

Leave a Reply

Your email address will not be published.