Alibaba said on Monday it was working to keep its listing on the New York Stock Exchange along with its Hong Kong listing after the Chinese e-commerce giant was placed on a watch list in the United States.
Alibaba shares closed down nearly 3.8% in Hong Kong, after a 11.1% decline in New York on Friday.
The company became the latest of more than 270 companies added to a US Securities and Exchange Commission list of Chinese companies that may be delisted if they do not meet audit requirements.
Alibaba said being added to the list means it is now considered to be in its first year of “non-inspection”.
“Alibaba will continue to monitor market developments, comply with applicable laws and regulations, and strive to maintain its listing status on the NYSE and the Hong Kong Stock Exchange,” it said in a statement.
US rules give Chinese companies until early 2024 to meet audit requirements, but Congress is considering accelerating the deadline to 2023.
China said it was committed to an agreement to resolve the dispute.
Alibaba said last week that it plans to convert its Hong Kong secondary listing to a dual primary listing, which would make it easier for mainland Chinese to access its shares.
Alibaba’s Hong Kong-listed shares are down 49% since its secondary listing in November 2019. In New York, its shares were listed in 2014 at $68 apiece and are now trading at $89.37.
The company is battling the threat of delisting, Chinese regulation and the prospect of its founder Jack Ma ceding control of the company’s affiliate Ant Group.
Source: CNN Brasil
