Two weeks after being added to the SEC Delisting watchlist, KE Holdings Inc. has announced the proposed dual primary listing of its Class A ordinary shares by way of introduction on the Main Board of The Stock Exchange of Hong Kong Limited (SEHK).
It is seen as a “homecoming” for the company, a leading integrated online and offline platform for housing transactions and services. Its American depositary shares (ADSs) will continue to be primarily listed and traded on the New York Stock Exchange (NYSE).
However, by May 12, KE Holdings Inc. will need to submit the documents required by SEC within three years. Failing to comply with American auditing standards will lead to theoretically immediate delisting after disclosing their 2023 annual report.
Joining KE Holdings are giant JD.com, Pinduoduo, Bilibili, and over 80 other firms are on the SEC list of entities facing possible expulsion from American exchanges. The reason is that Beijing refused to allow access to the businesses’ financial audits.