OneConnect was one of the twelve US SEC’s targets in the fourth batch
Ping An Group’s associate OneConnect (OCFT:NYSE) announced that it is aware of the fact was identified by the United States Securities and Exchange Commission ("SEC") under the Holding Foreign Companies Accountable Act of the United States ("HFCAA") on April 12, 2022.
However, such identification does not necessarily mean the company’s American Depository Shares (ADRs) will be compulsorily delisted in a short time.
In accordance with the HFCAA, a company will be delisted from a US stock exchange if such company has been identified by the SEC for three consecutive years due to the Public Company Accounting Oversight Board (PCAOB)'s inability to inspect the auditor working paper related to such company.
Issuers provisionally identified will have 15 business days to respond if they believe they have been incorrectly identified, and should include evidentiary support with their correspondence.
OneConnect has been actively exploring possible solutions to best protect the interest of its stakeholders. Earlier, on February 28, 2022, OneConnect submitted a listing application to the Hong Kong Stock Exchange for dual listing; Goldman Sachs and HSBC are the joint sponsors.
OneConnect is a technology-as-a-service (TaaS) platform that has been committed to delivering technology applications and technology-enabled business solutions to financial institutions. It has also expanded into areas such as government, regtech and enterprise services to support the digital transformation of the financial services ecosystem.
In fact, a dozen Chinese companies were added to the provisional list in this round on April 12. They include 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)
Previously, five Chinese companies – Baidu (BIDU:NASDAQ), iQiyi (IQ:NASDAQ), Futu Holdings (FUTU:NASDAQ), Nocera (NCRA:OTCMKS) and CASI Pharmaceuticals (CASI:NASDAQ) – were threatened by delisting from the US stock market on March 10.