Technology

The US put Alibaba on the list of delisting on the stock exchange


China’s Alibaba Group has become the latest name to be listed by the US Securities and Exchange Commission (SEC) for consideration for delisting.

Ending last week’s trading session, the group’s shares fell 11% to close at $89.37. In July alone, Alibaba shares fell 21.4%. The Chinese e-commerce giant is under a lot of pressure after it was reported that Jack Ma, the company’s billionaire founder, plans to give up control of Ant, the financial technology company under Alibaba. .

Alibaba Group may be delisted in the US. (Photo: Reuters)

Alibaba is among more than 270 Chinese companies “listed” in New York identified as at risk of being delisted under the Foreign Company Accountability Act (HFCAA), due to long-running controversies over compliance. auditors in accordance with US regulations.

Specifically, Chinese companies trading on the New York Stock Exchange store documents on the mainland, while US authorities require full access to these documents to perform their functions. audit ability.

In addition to Alibaba, there are other companies also under consideration for delisting such as Yum China Holding, biotech company BeiGene Ltd, Weibo Corp and JD.Com.

In 2014, Alibaba had its biggest initial public offering at the time, paving the way for Chinese companies listed on the US stock exchange to seek new funding.

China’s largest e-commerce group was established in 1999 in an apartment of Jack Ma. Since 2020, the company has been continuously “suppressed” by both US and Chinese authorities, causing the stock price to drop continuously.

Alibaba is planning to list for the first time in the Hong Kong market, targeting investors’ capital in mainland China.

“The initial registration of listing in Hong Kong does not mean that they are preparing to be delisted in the US. They simply want to reduce the risk in that market,” said Bo Pei, an analyst at Tiger Securities.

Vinh Ngo (According to Reuters)

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