The US securities regulator placed Chinese tech giant Baidu on a growing list of Chinese firms that face the threat of delisting from US stock exchanges due to Beijing withholding access to review their auditors’ work from US officials, reports Caixin.
The US Securities and Exchange Commission’s (SEC) publication of the businesses’ names is required under a 2020 US law that started a three-year clock for businesses to comply with inspection requirements covering all public companies in the US. The SEC also added Futu Holdings, Nocera, iQiyi and CASI Pharmaceuticals to its provisional list for possible delisting.
Wall Street’s main watchdog has long been expected to crack down on about 200 New York-traded companies whose parent businesses are based in the Chinese mainland and Hong Kong because the jurisdictions refuse to allow the inspections. Still, the SEC’s recent publication of companies jarred investors who’d been hoping for a deal between regulators in Beijing and Washington.