The U.S. Securities and Exchange Commission (SEC) on Thursday (21st) announced Li Auto (LI-US), Ruixing Coffee, Shell and other Chinese companies have entered the “pre-delisting list”, which is the fifth batch of Chinese concept stocks to be included in the list since March, showing that the United States continues to suppress Chinese concept stocks.
According to the announcement issued by the SEC on Thursday, the specific list is: Zhihu, Novartis Furniture, LOVARRA, Wanchun Pharmaceutical, Luckin Coffee, Jiguang, Scientific Energy, China Foods, Value Exchange International, Jersey Medical Group, Entrepreneur Universe Bright Group, China-Belgium Energy, China Network Cable, AMTD International, Best Group, Ideal Auto and Shell.
The SEC said that the deadline for the above-mentioned 17 companies to submit their defenses is May 12, local time. If these Chinese companies cannot provide evidence that they are not delisted, they will be included in the “determined delisting list.”
According to the provisions of the “Foreign Company Accountability Act” in the United States, companies that are included in the “determined delisting list” must submit the required SEC within three years (counting from the disclosure of the first annual report, and 2021 is regarded as the first year) document. If these companies fail to file or file documents that do not meet SEC requirements, they would theoretically be at risk of immediate delisting following the release of their 2023 annual reports (early 2024).
In addition, due to the deadline for the defense, the SEC has placed Futu Holdings, Nocera, iQiyi (IQ-US), Baidu (START US) and Kaixin Yuanda Pharmaceutical and other Chinese companies were included in the “Delisted List”. These five companies are the third batch of Chinese concept stocks to be included in the list.
Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said on Thursday that there are many factors for the decline of Chinese stocks, and the audit and supervision of China and the United States is the core of the problem.
Fang Xinghai also said that China, as a developing country, still has insufficient capital market development, so the Securities and Exchange Commission will not change its position of supporting enterprises to use both domestic and overseas markets.
