Alibaba moves a step closer towards getting booted off US stock exchanges

The firm's shares fell 9.5 per cent at 1:13 pm in New York after the announcement

Jack Ma, Alibaba group
(Photo: Bloomberg)
Bloomberg
1 min read Last Updated : Aug 02 2022 | 12:52 AM IST
Alibaba Group Holding has moved a step closer toward getting booted off US stock exchanges for American inspectors not being able to access to its financial audits.

The US Securities and Exchange Commission on Friday added the largest US-listed Chinese company to a growing roster of firms that face removal because of Beijing’s refusal to permit American officials to review their auditors’ work. The publication of the businesses’ names, which was required by a 2020 law, starts a three-year clock to a final delisting. 

The firm’s shares fell 9.5 per cent at 1:13 pm in New York after the announcement.

Wall Street’s main watchdog is cracking down on the more than 200 New York-traded firms with parent companies based in China and Hong Kong. 

With the clock ticking, some Chinese firms including Alibaba and Kingsoft Cloud Holdings said this week they are seeking primary listings in Hong Kong, joining Bilibili and Zai Lab which made the move earlier. The switch could provide a template for other US-listed Chinese firms that face delisting should Washington and Beijing fail to settle audit disputes.

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Topics :AlibabaUS stockWall Streets

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