US Authorities Threaten Alibaba With NYSE Delisting

Chinese tech giant Alibaba is the latest company to run afoul of the US Securities and Exchange Commission, which has threatened delisting from US stock exchanges. The Register reports: Alibaba's addition to the SEC's list of nearly 300 companies -- mostly from China -- means that US officials were unable to complete an audit of the company's finances. The 2020 Holding Foreign Companies Accountable Act (HFCAA) gives the SEC the authority to delist companies if it is suspected that financial audits may not be accurate. The news hit Alibaba stock hard on Friday, causing it to drop from $100.52 to $89.37 through the day. In a statement sent to the SEC on Monday, Alibaba said it would "strive to maintain its listing status," and that it would continue to monitor market developments and comply with applicable laws and regulations. Addition to the SEC's HFCAA list doesn't mean that Alibaba will immediately be removed from the New York Stock Exchange (NYSE). Instead, the notice marks the company's first "non-inspection" year; Alibaba is only actually in danger of delisting if it hands in two more consecutive annual reports that run afoul of the HFCAA. The report that landed the company under scrutiny covered Alibaba's fiscal year ending on March 31, 2022. Companies on the provisional HFCAA list have 15 business days to dispute addition to the list. Along with Alibaba's inclusion last week, pet company Boqii, Cheetah Mobile, ecommerce platform MOGU, manufacturing business Highway Holdings and logistics company Novagant Corp -- all from China or Hong Kong -- were added.

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