The United States (US) Securities and Exchange Commission (SEC) has identified nearly 80 Chinese firms facing possible delisting from the New York exchange.
Last Wednesday, the SEC released a list under a 2020 law known as The Holding Foreign Companies Accountable Act.
The Act was issued for the purpose of removing foreign power firms from U.S. exchanges if they failed to comply with American auditing for 3 consecutive years.
This comes in the wake of a protracted dispute between U.S. regulators, who have demanded full access to all audit papers of Chinese firms listed in New York.
However, so far China has continued to reject the access request on national security grounds.
Even so, regulators in both countries are discussing the operational details of the audit agreement that Beijing hopes to sign this year.
Among the big names stealing the spotlight on the list is JD.com.
According to a JD.com statement, they are aware of the list issued by the SEC under the act and the firm is actively exploring any possible solutions.
In addition, JD.com representatives also stated that they will comply with all applicable laws and regulations in China and the US, in ensuring that listings on both the Nasdaq and the Hong Kong Stock Exchange remain.
Meanwhile, other listed firms are JinkoSolar Holding Co Ltd, China Petroleum & Chemical Corp, Bilibili Inc and NetEase Inc.
For the record, Chinese regulators have asked several U.S. -listed firms including Alibaba, Baidu and JD.com to provide more audit disclosures.
