17 Chinese Firms Including Li Auto and KE Holdings Added to SEC Delisting Watchlist
The United States Securities and Exchange Commission (SEC) added 17 Chinese companies including Li Auto, Best Inc. and KE Holdings to its delisting watchlist on Thursday. This is the fifth batch of China concepts stock companies to be included on the list since March.
The 17 companies are: Best Inc., Li Auto, KE Holdings, Zhihu, Nova Lifestyle, LOVARRA, BeyondSpring Inc., Luckin Coffee Inc., Aurora Mobile Limited, Scientific Energy, China Foods Holdings Limited, Value Exchange International, JRSIS Health Care Corporation, Entrepreneur Universe Bright Group, CBAK Energy Technology, AMTD IDEA Group.
The SEC claimed that the deadline for the 17 companies to file their arguments was May 12, local time. KE Holdings responded on Friday that the company has been actively seeking possible solutions to maximize the protection of its shareholders’ interests.
Companies listed on the “determined delisting list” need to submit the documents required by SEC within three years. If the companies on this list do not submit the documents, or if the submissions do not meet SEC requirements, they will theoretically face immediate delisting after disclosing their 2023 annual report (in early 2024).
On March 31, the China Securities Regulatory Commission responded to this matter. According to the U.S. Securities and Exchange Commission, it is a normal procedure for local regulatory authorities to implement the Holding Foreign Companies Accountable Act (HFCAA). Whether the listed companies will ultimately withdraw from the stock market in the next two years ultimately depends on the progress and results of Sino-U.S. audit supervision cooperation.
In addition, due to the defense deadline, Futu Holdings Limited, Nocera, iQiyi, Baidu and CASI Pharmaceuticals have now entered the “confirmed delisting list.” These five companies are the third batch of China concept stocks to be included in the list.
SEE ALSO: Five Chinese Firms Including Baidu Face Possible Delisting in U.S.