Alibaba Group Holding Inc. BABA has said it will continue to monitor market developments, comply with applicable laws and regulations and strive to maintain its listing status on both the New York Stock Exchange (NYSE) and the Hong Kong Stock Exchange.
The firm’s statement comes after it was reportedly placed on a de-listing watch by the U.S.
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SEC’s Findings: According to the statement put out by Alibaba, the SEC’s identification indicates the regulator has determined that Alibaba used a registered public accounting firm, whose audit work papers cannot be fully inspected or investigated by the Public Company Accounting Oversight Board of the United States (PCAOB) for the fiscal year ended March 31, 2022.
What Will Happen: Alibaba stated that with the above identification, this year becomes the firm’s first “non-inspection” year.
Under the Holding Foreign Companies Accountable Act (HFCAA), if the PCAOB cannot fully inspect or investigate the registered public accounting firm that audited a U.S.-listed company’s financial statements for three consecutive “non-inspection” years, the SEC is required to prohibit the company’s securities from being traded on any national U.S. bourse, including the NYSE or “over-the-counter” markets.
Price Movement: Alibaba shares were trading 2.2% down on Monday in Hong Kong and have lost over 11% since last week. Since the beginning of 2022, Alibaba shares have lost more than 20%.
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Image and article originally from www.benzinga.com. Read the original article here.