Alibaba to work with U.S. regulators after SEC warning

United States/ China
Published:  04 August, 2022
Credit: Nopparat Khokthong/Shutterstock.com

Alibaba Group Holding has reported that it will work with U.S. regulators to maintain its New York listing after a warning from the Securities Exchange Commission (SEC).

The Chinese e-commerce business was added to the SEC’s watchlist of Chinese companies, meaning that the company could be delisted for failing to meet auditing standards.

Shares in the group fell by 11% in response to the news. Over 270 U.S.-listed Chinese companies are at risk of being removed from the exchange as U.S. regulators demand access to audit information stored in China.

Reportedly, Alibaba’s board of directors has agreed to pursue a primary listing on the Hong Kong Stock Exchange, where it currently holds a secondary listing.

Source: Proactive