August 8, 2022

He added Ali Baba to the watch list for delisting the shares of the Saudi Electricity Company, and the shares fell

He added Ali Baba to the watch list for delisting the shares of the Saudi Electricity Company, and the shares fell

July 29 (Reuters) – Alibaba Group Holdings Ltd. (9988.HK)On Friday, it became the latest company to be added to the US Securities and Exchange Commission’s list of Chinese companies that may be delisted.

Alibaba shares were down 11% to $89.37 at the closing bell, ending the month down 21.4%. The e-commerce giant’s shares were already feeling the pressure after reports indicated that what was planning to relinquish control of financial technology company Ant, a subsidiary of Alibaba. Read more

Alibaba is among more than 270 Chinese companies listed in New York identified as at risk of delisting under the Foreign Holding Company Accountability Act (HFCAA), which aims to address a long-running dispute over audit compliance for Chinese companies listed in the United States.

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US regulators are demanding full access to audit working papers of Chinese companies listed in New York, and stored in China.

While Washington and Beijing are in talks over the dispute, KFC Yum China Holdings (9987.HK)biotechnology company BeiGene Ltd (6160.HK)Weibo Corp and JD.Com are among the companies that could face delisting.

Alibaba’s initial public offering in 2014 was the largest for the first time in history at the time and paved the way for other Chinese companies seeking fresh capital to list on the US stock exchange.

Founded in 1999 in Jack Ma’s apartment and serving a large population in China, the e-commerce company has seen the wrath of both US and Chinese regulators amid a widespread crackdown that has battered its stock since 2020.

It now plans to add an initial listing in Hong Kong, targeting investors in mainland China.

“Applying for primary listing status in Hong Kong doesn’t necessarily mean they think they will be de-listed in the United States…it’s just to mitigate those potential risks,” said Bo Bai, US analyst Tiger Securities.

Other companies added to the list on Friday include Mogu Inc (MOGU.N)Boqii Holdings Co., Ltd. (BQ.N)Cheetah Mobile Inc and Highway Holdings Limited (HIHO.O).

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(Nivdita Balu reports in Bengaluru); Editing by Krishna Chandra Elori

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