Shares of Alibaba, the Chinese e-commerce giant, fell sharply on Friday, following the company was added to a list of Chinese companies facing possible delisting from the Securities and Exchange Commission.
Alibaba shares posted losses of more than 20% in July.
US regulators have threatened to remove foreign companies from the list if they do not comply with US accounting standards.
The Wall Street Journal noted that more than 250 Chinese companies, including Alibaba, face the risk of delisting their shares on Wall Street, if the two countries cannot reach an agreement for US regulators to review the financial audits of Chinese companies.
Alibaba shares had a tough week, as the company’s shares also fell on Thursday, following a report that billionaire Jack Ma plans to relinquish control of the Ant Group.
Alibaba owns regarding a third of Ant, the fintech hub. The Wall Street Journal reported Thursday that Ant is looking to distance itself from Alibaba, which Ma founded, following a long period of regulatory pressure.
Meanwhile, analysts polled by FactSet expect Alibaba’s revenue to come in at $30.2 billion for the quarter ending in June, down from $31.8 billion a year earlier.
