The U.S. continues to threaten Chinese stocks on Wall Street with delisting if the Chinese government does not allow public accounting firms to audit their companies’ accounts.
The U.S. Securities and Exchange Commission on May 9 added nearly a dozen of Chinese concept stocks to a list facing delisting risk.
This is the seventh batch of Chinese stocks identified by the U.S. securities regulator since March under the Holding Foreign Companies Accountable Act.
One notable company on the list is the Chinese ride-hailing giant Didi Global.
The U.S. securities commission allows these Chinese firms until May 31 to appeal with evidence. If they don’t appeal by then, they will be placed on the conclusive list. Ready for delisting!
Based on the Holding Foreign Companies Accountable Act, since March the U.S. regulator began publishing its “provisional list” of Chinese companies.
Besides audit access, the act requires Chinese foreign firms to show that they are not owned or controlled by the Chinese government.
Since March, 139 Chinese stocks have been added to the U.S. list of potential delisting. Among them, 23 have been moved to the list of confirmed delisting, including BeiGene, Weibo, Baidu, and iQiyi.
The Wall Street’s watchdog has long been expected to crack down on about 200 U.S.-listed firms with parent companies based in China and Hong Kong.