The SEC adds China’s to the list of over 80 companies facing the risk of deletion

May 5 (Reuters) – The US Securities and Exchange Commission (SEC) added more than 80 companies, including China’s (9618.HK), to a list of entities facing possible expulsions from US stock markets in the midst of a protracted audit situation between the United States and China.

On Wednesday, the SEC expanded the list of a preliminary listing under a 2020 law known as The Holding Foreign Companies Accountable Act (HFCAA), which aims to remove companies with foreign jurisdiction from US stock exchanges if they do not comply with US auditing standards for three years in a row.

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

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In the long-running dispute, US regulators have demanded full access to audit papers from New York-listed Chinese companies, which are stored in China.

The request has so far been rejected by China due to national security, but regulators in the two countries are discussing operational details of an audit agreement that Beijing hopes to sign this year. read more said on Thursday that they are aware that the company has been identified by the SEC under the law, and that it has actively investigated possible solutions.

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

Other large Chinese companies that were added to the SEC’s list were JinkoSolar Holding Co Ltd (JKS.N), China Petroleum & Chemical Corp (600028.SS), Bilibili Inc (9626.HK) and NetEase Inc (9999.HK), among others .

Sources had told Reuters in March that Chinese regulators had asked some of the country’s US listed companies, including Alibaba (9988.HK), Baidu (9888.HK) and, to prepare more audit revelations. read more

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Reporting from Sabahatjahan Contractor, Akriti Sharma, Shivam Patel and Medha Singh in Bengaluru; editing by Uttaresh.V and Rashmi Aich

Our standards: Thomson Reuters Trust Principles.

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