The US Securities and Exchange Commission (SEC) added over 80 more companies to a growing list of firms facing the possibility of delisting from US exchanges due to a lack of financial audit access for regulators. Included in the list are Chinese tech giants JD.com, Pinduoduo and Bilibili, reports Bloomberg.
The SEC on Wednesday put the corporations on a provisional lineup of US-listed Chinese entities that face delisting under a 2020 law, starting a three-year clock to comply with inspection requirements. Some of the largest Chinese companies traded on US exchanges, including China Petroleum & Chemical Corp, JinkoSolar Holding, NetEase, and NIO were also added.
Wall Street’s main watchdog has long been expected to crack down on about 200 New York-traded firms with parent companies based in China and Hong Kong because the jurisdictions refuse to allow the inspections by American officials. The SEC’s publication of companies over the past several weeks has jarred investors who’d been hoping for a deal between regulators in Beijing and Washington.