May 28, 2022
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Over 80 companies added to SEC list facing delisting risk

A MAN wears a protecting masks as he walks on Wall Avenue in New York Metropolis, New York, US, March 13, 2020. — REUTERS

THE US Securities and Alternate Fee (SEC) added over 80 corporations, together with China’s, to a list of entities facing attainable expulsion from American exchanges amid a long-running auditing standoff between the USA and China.

On Wednesday, the SEC expanded the list on a provisional lineup beneath a 2020 legislation referred to as The Holding Overseas Companies Accountable Act (HFCAA), which goals to take away foreign-jurisdiction companies from US bourses in the event that they fail to adjust to American auditing requirements for 3 years in a row.

Within the long-drawn dispute, US regulators have been demanding full entry to audit working papers of New York-listed Chinese language companies, that are saved in China.

The request has up to now been denied by China on nationwide safety grounds, however regulators within the two nations are discussing operational particulars of an audit deal that Beijing hopes to signal this 12 months. mentioned on Thursday it’s conscious that the corporate has been recognized by the SEC beneath the Act, and that it has been actively exploring attainable options.

“The company will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both Nasdaq and the Hong Kong Stock Exchange,” mentioned in an announcement.

Different massive Chinese language companies that have been added to the SEC’s list have been JinkoSolar Holding Co Ltd., China Petroleum & Chemical Corp., Bilibili Inc., and NetEase Inc., amongst others.

Sources had instructed Reuters in March Chinese language regulators had requested a few of the nation’s US-listed corporations, together with Alibaba, Baidu, and, to put together extra audit disclosures.  Reuters

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