Alibaba Group Holding Ltd (NYSE:BABA) shares are trading lower Thursday alongside several Chinese companies amid renewed delisting concerns after the U.S. Securities and Exchange Commission widened its regulatory crackdown on U.S.-listed Chinese companies for not disclosing audit reports.
The SEC released a provisional list of 80 Chinese companies for pending non-compliance with audit requirements related to the Holding Foreign Companies Accountable Act (HFCAA). The companies that have been identified have up to 15 business days to contact the commision and provide evidence to prove compliance.
The HFCAA, which was passed near the end of 2020, requires Chinese companies listed on U.S. exchanges to allow the U.S. Public Company Accounting Oversight Board to inspect their auditing reports.
Related Link: JD, Nio, Pinduoduo Among 80 Chinese Companies Identified By SEC For Potential Delisting: What Investors Should Know
Alibaba operates online marketplaces in China, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
BABA 52-Week Range: $73.28 - $231.48
According to data from Benzinga Pro, the stock was down 5.65% at $95.68 at press time.
Photo: courtesy of Alibaba.
