Tuesday, August 9, 2022

Alibaba: US Efforts to maintain Hong Kong listing status

Chinese online shopping giant Alibaba Group said for the first time that the group would strive to maintain both the New York Stock Exchange andHong KongExchange listing status.

The group announced on the website of the Hong Kong Stock Exchange that Alibaba was banned by the United States on 29 July.securitiesThe Exchange Commission (SEC) is recognized as a “commission-accredited issuer” under the Foreign Companies Accountability Act.

The move means the SEC believes the US Public Company Accounting Oversight Board (PCAOB) cannot fully inspect or examine Alibaba’s accounting audit papers for the fiscal year ended March 31 this year .

In accordance with the above determination, this year becomes Alibaba’s first “non-inspection” year, and if PCAOB fails to fully inspect or investigate the accounting reports of listed companies for 3 consecutive years, it may be referred to any one by the SEC. will also be banned from the national stock exchange or listing in the United States. Trade in the US “over-the-counter” market.

The announcement also said that Alibaba plans to seek a primary listing on the Hong Kong Stock Exchange and become a dual primary listed issuer.

Alibaba was listed in the United States several years ago, and in late 2019, it made a secondary listing on the Hong Kong Stock Exchange in the form of “equal shares with different rights.”

The United States recently strengthened its auditing of listed Chinese concept shares, and published a list of companies that do not meet the conditions from time to time. Once the respective companies are included in the list, there is a risk of being left out of the list.

The market expects this audit turmoil to cause some or most of the Chinese concept shares in the United States to be listed on the Hong Kong Stock Exchange.

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