Alibaba has faced growth challenges amid tightening regulation of China’s domestic tech sector and a slowdown in the world’s second-largest economy. But analysts say the e-commerce giant’s growth could accelerate through 2022.
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Chinese e-commerce giant Alibaba said it would comply with US regulators and work to maintain its listings in New York and Hong Kong.
“Alibaba will continue to monitor market developments, comply with applicable laws and regulations, and strive to maintain its listing status on both the NYSE and the Hong Kong Stock Exchange,” it said in a statement. announced to the Hong Kong stock exchange on Monday.
The statement came after Alibaba was added to the US Securities and Exchange Commission’s list of Chinese companies at risk of being delisted for failing to meet audit requirements on Friday. As a result, US-listed Alibaba shares fell 11% in Friday trading.
On Monday, stocks fell even more 5% in Hong Kongbut recovered to trade 2.2% mid-afternoon.
Under Hold Offshore Companies Accountability Act By law, the SEC identifies public companies that have maintained a registered public accounting firm to issue audit reports where that company has a branch or office.
On Monday, Alibaba said it had been added to the SEC’s list, indicating that its audits for the financial year ended March 31, 2022 could not be fully reviewed by the Accounting Oversight Board. American Public Company.
According to the HFCAA, if the PCAOB is unable to adequately audit the financial statements of a listed company in the United States for three consecutive “unchecked” years, the SEC is required to ban the company’s securities from being audited. traded on the US market.
Last week, the Chinese tech giant said it would dual primary listing registration in Hong Kong. The tech giant’s shares are already traded on both US and Hong Kong exchanges, but the current listing in Hong Kong is secondary.
The main listing process in Hong Kong is expected to be completed before the end of 2022, the company said in the statement.
– CNBC’s Abigail Ng contributed to this report
