The US has added Alibaba to a list of companies that could face delisting from the NYSE over audit concerns.
The US has been cracking down on Chinese firms, especially those whose finances cannot be properly audited. Alibaba is the latest to run afoul of US regulators, according to The Register, and is now on the 2020 Holding Foreign Companies Accountable Act (HFCAA) list.
As the report goes on to highlight, being on the HFCAA list doesn’t automatically lead to delisting. Alibaba’s addition to the list merely means it had its first “non-inspection” year. For delisting to occur, the company would need to file two more consecutive annual reports that are not compliant.
Alibaba issued the following statement to the SEC:
Alibaba will continue to monitor market developments, comply with applicable laws and regulations and strive to maintain its listing status on both the NYSE and the Hong Kong Stock Exchange.
