On July 29th local time, the US Securities and Exchange Commission (SEC) updated a batch of “pre -delivery list”. Alibaba, Mushroom Street, Cheetah Mobile, Boch Pets and other four Chinese stock companies were added. As soon as the news came out, Alibaba’s stock price fell 11%, and the cumulative decline of more than 20%this month. According to the “Accountability Act of Foreign Companies”, foreign issuers listed in the United States hired accounting firms from judicial jurisdictions outside the United States. Relevant listed companies will be included in the “pre -delivery list”. After boarding the pre -delisting list, the relevant company can prove to the SEC within 15 days to prove that they do not have the conditions to be passed, otherwise they will be transferred to the determined list. If you enter the list for three consecutive years, relevant companies will not be traded on the US stock exchange and forced delisting. This year is the first year of Alibaba’s entering the list, that is, in the worst case, Alibaba will face the risk of exiting the US stock market in 2024.
Facing the potential “delisting crisis”, Alibaba seems to be ready in advance. Earlier on July 26, Alibaba announced that it had submitted an application to the Hong Kong Stock Exchange and plans to add Hong Kong as the main listing place. It is expected to take effect by the end of 2022. While ensuring the Hong Kong stock market as the company’s retreat, Alibaba also responded to the “pre -delivery list” of the US stocks, saying that it will continue to pay attention to the market dynamics, abide by the applicable laws and regulations, and strive to maintain the same time in the NYSE simultaneously Listing status of the two places of the Hong Kong Stock Exchange.
Post time: Aug-02-2022