March 24 (Reuters) – Weibo Corp stated on Thursday it can think about evaluating choices after the Chinese language social media platform was added to U.S. securities regulator’s checklist of firms dealing with the danger of being delisted.
Washington has lengthy demanded full entry to the books of U.S.-listed firms, however Beijing, citing nationwide safety issues, bars international inspection of working papers from native accounting corporations.
The united statesCongress in 2020 handed the Holding International Corporations Accountable Act (HFCAA), which compels the U.S. Securities and Trade Fee to delist shares of firms that don’t comply.
In December, the SEC recognized 273 firms that have been in danger beneath the HFCAA, with out naming them.
Earlier this month, it named 5 firms, together with KFC operator Yum China Holdings (9987.HK) and biotech agency BeiGene Ltd (6160.HK), that might face delisting. It added Weibo to the checklist on Wednesday. learn extra
“The SEC will step by step transfer to determine the extra systemically important China based mostly firms listed within the U.S.” stated Shaswat Ok. Das, a lawyer at King & Spalding LLP who beforehand labored on the Public Firm Accounting Oversight Board as its major negotiator with the Chinese language regulators on cross-border audit oversight from 2011 to 2015.
China’s securities regulator stated earlier this month it had made “optimistic progress” with U.S. counterparts on securities supervision, after U.S.-listed Chinese language shares tumbled as the primary Chinese language corporations to be doubtlessly de-listed have been named.
Das, nevertheless, cautioned it was too early to inform whether or not that is going to materialize into something important.
In line with a Reuters report on Tuesday, citing sources, Chinese language regulators have requested a number of the nation’s U.S.-listed corporations, together with Alibaba , Baidu and JD.com , to arrange for extra audit disclosures.
Individually, Yum China has stated it might must delist from the New York inventory change by 2024 after U.S. authorities stated it had failed to supply entry to audit paperwork. learn extra
Reporting by Eva Mathews, Tiyashi Datta and Chavi Mehta in Bengaluru and Echo Wang in New York; Enhancing by Shinjini Ganguli
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