Alibaba “strives” to keep New York listing despite addition to SEC watchlist

Alibaba has said it would “strive” to keep its place on the New York Stock Exchange despite the US Securities and Exchange Commission (SEC) revealing plans to delist the tech giant as well as 200 others 2024.

Jack Ma’s company was added to the list of Chinese companies that are subject to a banning order from the SEC if they do not provide access to audit files.

Alibaba said it would “continue to monitor market developments” on Monday, saying it would “strive to maintain its listing status on both the NYSE and the Hong Kong Stock Exchange”.

NYSE Alibaba Group sign
READ MORE: Alibaba Group pursues primary listing on the Hong Kong Stock Exchange

The SEC has been slowly adding Chinese firms to its list of companies in breach of its audit disclosure rules as they begin filing their 2021 annual reports. Alibaba filed its results last week.

China has prevented companies from providing foreign regulators with access to audit files, despite US laws requiring them to be inspected every three years.

In order to resolve the issue, an agreement will need to be made between Washington and Beijing to allow the US to access audit files.

Alibaba did not explain how it could otherwise maintain its US listing otherwise.

The company last week said it would upgrade its secondary listing on the Hong Kong Stock Exchange to a primary listing.

Chinese tech firms have recently relied heavily on the US market to raise capital. A mass delisting could threaten approximately $1.3 trillion of shareholder value.

Alibaba’s rivals JD.com and Baidu have also been added to the SEC’s watchlist.

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