The US SEC added them to a list of Chinese firms identified under the dreaded HFCAA -- the fourth batch since March
The US Securities and Exchange Commission (SEC) added a dozen Chinese companies to a growing watch list of firms threatened by delisting from the US stock market on April 12.
This marks the fourth batch of US-listed Chinese firms facing the delisting risks since March. The deadline for these companies to submit evidence in self-defense is May 5.
The latest batch of companies put on the list by SEC includes Microvast (MVST: NASDAQ), China Automotive Systems (CAAS: NASDAQ), DAQO New Energy (DQ: NYSE), Connect Biopharma (CNTB: NASDAQ), OneConnect Financial Technology (OCFT: NYSE), Green Vision Biotechnology (GVBT: OTCMKS), Legend Biotech (LEGN: NASDAQ), Sohu.com (SOHU: NASDAQ), Studio City International (MSC: NYSE), Melco Resorts & Entertainment (MLCO: NASDAQ), LOGIQ (LGIQ: OTCMKS) and Noah Holdings (NOAH: NYSE).
Under the Holding Foreign Companies Accountable Act (HFCAA), these companies will be delisted from US exchanges if they fail to meet the audit requirements for three consecutive years, beginning in 2021, and will have to suspend trading as early as 2024.
The SEC named five Chinese companies – Baidu, iQiyi, Futu Holding, Nocera, and CASI Pharmaceuticals Inc. – to the list of firms that may face expulsion from the US stock market on March 10.
Earlier, five Chinese companies including BeiGene and Yum China were added to a provisional list of issuers identified under the HFCAA, meaning these firms are at risk of being delisted if they did not meet standards set by the SEC.