During a long-running auditing stalemate between the US and China, the US Securities and Exchange Commission (SEC) has added more than 80 companies to a list of entities facing probable expulsion from American exchanges, including China's JD.com.
The SEC enlarged a preliminary list on Wednesday under a 2020 law known as The Holding Foreign Businesses Accountable Act (HFCAA), which aims to remove foreign-jurisdiction companies from U.S. bourses if they fail to meet American auditing standards for three years in a row.
In the long-running conflict, US regulators have demanded full access to audit working papers held in China by New York-listed Chinese corporations.
China has so far refused the request due to national security concerns, but regulators in both countries are debating operational specifics of an audit agreement that Beijing expects to finalise this year.
JD.com stated on Thursday that it is aware that it has been named by the SEC as a target of the Act and that it is actively looking for alternatives.
"The company will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both Nasdaq and the Hong Kong Stock Exchange," JD.com said in a statement.
JinkoSolar Holding Co Ltd, China Petroleum & Chemical Corp (600028.SS), Bilibili Inc, and NetEase Inc were among the other significant Chinese companies placed to the SEC's list.
According to Reuters, Chinese regulators urged some of the country's US-listed companies, such as Alibaba, Baidu, and JD.com, to submit extra audit disclosures in March.
(Source:www.business-standard.com)
The SEC enlarged a preliminary list on Wednesday under a 2020 law known as The Holding Foreign Businesses Accountable Act (HFCAA), which aims to remove foreign-jurisdiction companies from U.S. bourses if they fail to meet American auditing standards for three years in a row.
In the long-running conflict, US regulators have demanded full access to audit working papers held in China by New York-listed Chinese corporations.
China has so far refused the request due to national security concerns, but regulators in both countries are debating operational specifics of an audit agreement that Beijing expects to finalise this year.
JD.com stated on Thursday that it is aware that it has been named by the SEC as a target of the Act and that it is actively looking for alternatives.
"The company will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both Nasdaq and the Hong Kong Stock Exchange," JD.com said in a statement.
JinkoSolar Holding Co Ltd, China Petroleum & Chemical Corp (600028.SS), Bilibili Inc, and NetEase Inc were among the other significant Chinese companies placed to the SEC's list.
According to Reuters, Chinese regulators urged some of the country's US-listed companies, such as Alibaba, Baidu, and JD.com, to submit extra audit disclosures in March.
(Source:www.business-standard.com)
