(New York Comprehensive News) Chinese e -commerce giant Alibaba Group was included in the "pre -delivery" list by the US Securities and Exchange Commission (SEC) on Friday (July 29). Facing the risk of delisting, the stock price fell sharply on the same day.
After the news came out, Alibaba US stocks fell 11 % to $ 89.37 (S $ 123.39) on the same day; in July, it fell 21.38 %, which is the worst performance since November last year.
Comprehensive Reuters, Bloomberg and other reports, the SEC is included in the "pre -delivery" list is Mushroom Street, Cheetah Mobile, Poch Pets, etc.These companies must prove to the SEC within 15 days that they do not have the conditions for delisting, otherwise they will be transferred to the determined list.However, Alibaba emphasized that since its listing in 2014, its accounts have been audited by global recognized accounting firms and shall meet the regulatory standards.
Bloomberg reports that the US SEC's move will promote investors to worry about Alibaba's business prospects. If they are forced to delist from the New York Stock Exchange, Alibaba will be the largest Chinese stock market in the US stock market so farEssence
Alibaba was listed in the United States in 2014, the largest first public offering (IPO) at that time.As of the closing of July 29, Alibaba's market value was US $ 236.664 billion, which has shrunk by more than 70 % from the high market value at the end of 2020.
According to the HFCAA passed by the US company in 2020, if a foreign company listed in the United States cannot allow US regulatory agencies to check the audit draft for three consecutive years, it may be forced to delist.When Alibaba released this year's fiscal year report on the 26th, it is expected that Alibaba is likely to be included in the "pre -delivery" list.
Regarding whether the US regulatory agency is allowed to review the audit draft of Chinese companies listed in the United States, China and the United States have been arguing for many years.The US listed company's Accounting Supervision Commission (PCAOB) requires that it can have complete authority to the audit draft of China Stocks, otherwise these companies cannot continue to trade on the New York Stock Exchange, but the Chinese government refuses to protect national secrets and security.
As the two countries have been unable to reach a audit agreement, Alibaba has announced on July 26 that it has been applied for a listing status from the second listing to the main listing in Hong Kong. It is expected that it will take effect by the end of this year.After the listing process is completed, Alibaba will realize the dual listing of the NYSE and the Hong Kong Stock Exchange.
Financial Association quoted securities firms analysts that double listed companies will have the opportunity to include the Hong Kong Stock Connect, gain higher liquidity, and improve the company's financing capabilities.Bloomberg also believes that this can provide a template for other Chinese companies listed in the United States.
SEC is included in the "Pre -Delivery" list is Mushroom Street, Cheetah Mobile, Poch Pets, etc.These companies must prove to the SEC within 15 days that they do not have the conditions for delisting, otherwise they will be transferred to the determined list.
