According to China Central Television News, the American Stock Exchange listed 80 companies, including Chinese companies such as jd.com and pinduoduo.
Chinese Foreign Ministry spokesman Zhao Lijian said at a regular press conference on May 5 that China’s securities regulatory authorities communicated with the U.S. securities regulatory authorities on this. The inclusion of Chinese enterprises in the relevant list is a step for the U.S. side to implement relevant Chinese laws, does not mean that relevant enterprises have been delisted. Whether these enterprises have been delisted and listed in the United States depends on the progress and results of China US audit regulatory cooperation
According to the official website of the securities and Exchange Commission of the United States (SEC), on May 4 local time, the agency added 88 Chinese concept stocks including jd.com, BiliBili and pinduoduo to the “pre delisting list”, raising the number of Chinese concept stocks on the list to 105. Wind data show that there are 281 Chinese concept stocks listed in the United States.
Source: screenshot of SEC official website
It is reported that the newly added companies on Wednesday include Huaneng Power International Inc(600011) , Aluminum Corporation Of China Limited(601600) , BiliBili, pinduoduo, 36 krypton, Tencent music, Ctrip, Xiaopeng automobile, JD, China Mobile, Netease, Weilai automobile, Petrochina Company Limited(601857) , Kexing biology and other well-known companies in various industries.
According to the foreign company accountability act previously published by the SEC, companies listed in the “confirmed delisting list” need to submit documents required by the SEC within three years (calculated from the disclosure of the first annual report and 2021 as the first year). If the companies in the “delisting list” do not submit or submit documents that do not meet the requirements of the SEC, they will theoretically face immediate delisting after the disclosure of the 2023 annual report (early 2024).
In addition, according to the securities times, 23 zhonggai shares that had previously entered the “pre delisting list” have entered the “confirmed delisting list”.
In early March this year, after the SEC announced five “pre delisted” listed companies for the first time, the relevant listed share prices fell sharply. However, after the announcement of the list, the performance of zhonggai shares has not been greatly affected. According to the latest list, most of the listed Chinese stocks still rose with the overall trend of US stocks.
as of the closing on May 4, BiliBili rose 2.91%, Tencent Music Group rose 2.48%, pinduoduo rose 3.28%, velai rose 3.42%, China Southern Airlines Company Limited(600029) and China Eastern Airlines rose more than 2%, and JD rose more than 1%
On March 16, the special meeting of the financial stability and Development Commission of the State Council said that at present, the regulatory authorities of China and the United States have maintained good communication, made positive progress and are committed to forming specific cooperation plans. The Chinese government continues to support all kinds of enterprises to list abroad.
On March 23, the microblog was listed in the “pre delisting list” by the SEC, and on March 30, the SEC listed five Chinese Stock Companies in the “pre delisting list”.
On March 31, the head of the International Department of the CSRC responded that he had noticed the statement made by the chairman of the US SEC on the cooperation between the two sides in audit and supervision in a recent media television interview. The regulatory authorities of the two sides had a thoughtful, mutual respect and fruitful dialogue. Since August last year, chairman Yi Huiman and chairman Gensler of China Securities Regulatory Commission have held three video conferences to discuss and solve the remaining problems in China US audit and supervision cooperation. China and the public company accounting oversight board of the United States (PCAOB) have held several rounds of frank, professional and efficient talks, which are generally progressing smoothly, and the communication between the two sides will continue. Both sides are willing to resolve differences and problems. The final outcome depends on the wisdom and original intention of both sides.
In addition, for some enterprises listed in the delisting risk list by the SEC, it is learned from the SEC that this is a normal procedure for the U.S. regulatory authorities to implement the foreign company Accountability Act. Whether the listed companies really delist in the next two years ultimately depends on the progress and results of China US audit and regulatory cooperation.
On May 4, the official website of China Securities Regulatory Commission published the article “the CSRC earnestly implements the spirit of the meeting of the Political Bureau of the CPC Central Committee and studies the policies and measures for the implementation of the capital market”, which once again stressed that it will steadily expand the institutional opening of the capital market. Expand the scope of interconnection between domestic and foreign markets, deepen the cooperation between the mainland and Hong Kong capital markets, and promote the implementation of the regulatory system for overseas listing of domestic enterprises.
