July 17, 2024

Westside People

Complete News World

China’s SEC has added JD.com to its list of more than 80 companies facing delisting risk

May 5 (Reuters) – The US Securities and Exchange Commission (SEC) has added more than 80 companies, including China’s JD.com (9618.HK)to the list of entities facing possible expulsion from US stock exchanges amid a prolonged scrutiny standoff between the US and China.

On Wednesday, the Securities and Exchange Commission expanded the listing on a temporary list under a 2020 law known as the Foreign Holding Company Accountability Act (HFCAA), which aims to remove companies with foreign jurisdiction from US exchanges if they fail to comply with US auditing standards for three consecutive years.

US-listed stocks from Alibaba, Baidu, JD.com Inc and Didi Global (DIDI.N) It fell between 2.3% and 2.8% in pre-market trading.

Register now to get free unlimited access to Reuters.com

In the long-running dispute, US regulators are demanding full access to auditing working papers of Chinese companies listed in New York, and stored in China.

China has so far rejected the request on national security grounds, but regulators in the two countries are discussing operational details of an audit deal that Beijing hopes to sign this year. Read more

JD.com said Thursday that it understands that the company has been identified by the Securities and Exchange Commission by law, and that it is actively exploring possible solutions.

“The company will continue to comply with applicable laws and regulations in both China and the United States, and will strive to maintain listing status on both the Nasdaq and Hong Kong Stock Exchanges,” JD.com said in a statement.

Another large Chinese company added to the SEC list was JinkoSolar Holding Co Ltd (JKS.N)China Petroleum and Chemical Corporation (600028.SS)Bilibili Corporation (9626.HK)and NetEase Inc (9999.HK)among other things.

See also  Oracle fined $23 million for bribing officials in India, Turkey and the United Arab Emirates

Sources told Reuters in March that Chinese regulators had asked some US-listed companies in the country, including Alibaba. (9988.HK)Baidu (9888.HK)and JD.com to prepare more audit disclosures. Read more

Register now to get free unlimited access to Reuters.com

Report by Subahan Contractor, Akriti Sharma, Shivam Patel and Medha Singh in Bengaluru; Editing of Uttaresh in Warshmi Aish

Our criteria: Thomson Reuters Trust Principles.