Technology

Alibaba clings to the opportunity to continue listing in the US


On August 1, Chinese e-commerce giant Alibaba said it would comply with the request of US authorities to maintain parallel listings of shares in New York and Hong Kong.

“Alibaba will continue to monitor market developments, comply with applicable regulations, and strive to maintain listing status on both the NYSE and the Hong Kong Stock Exchange,” the company said in a statement.

Alibaba confirmed that it will comply with the SEC’s audit request.
(Photo: ESGTelegraph)

The statement comes after the US Securities and Exchange Commission (SEC) announced on July 29, it will put Chinese companies that do not meet the requirements of the audit to the list of delisting, causing shares to be delisted. Alibaba shares traded on the New York Stock Exchange fell 11% in the session.

Entering August 1, the company’s shares continued to drop more than 5% on the Hong Kong floor before recovering slightly.

Under the Foreign Companies Accountability Act (HFCAA), the SEC requires public companies to coordinate with a registered public accounting firm to issue audit reports where the company is located. branches and offices.

In the event that the financial statements of a public company are not audited for 3 consecutive years, that company’s securities will be banned from trading in the US market.

As a result, Alibaba was placed on the “black list” of the SEC, after the company’s audit report for the fiscal year ended on March 31, 2022 was not approved by the Company’s Accounting Oversight Committee. public (PCAOB).

Last week, the Chinese tech giant announced it would file for an initial listing on the Hong Kong Stock Exchange. In fact, Alibaba’s shares are still trading in two markets, but in Hong Kong only as an additional listing.

Vinh Ngo (According to CNBC)

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