According to the information on the US Securities and Exchange Commission (SEC) website, they transferred the sixth batch of 88 Chinese stocks listed under the provisional list to the conclusive list under the Holding Foreign Companies Accountable Act (HFCAA), including Weibo, KE Holdings, JD.com, Bilibili, Autohome.
As required by the HFCAA, the SEC started publishing its “provisional list” of companies identified as running afoul of the requirements in March. By May, the list had grown to more than 100 companies, including JD.com Inc., Pinduoduo Inc., and China Petroleum & Chemical Corp.
Some giant Chinese stocks risk being kicked off the New York Stock Exchange and Nasdaq if they refuse to let US regulators see their financial audits.
Beijing, however, has blocked domestic companies and their Chinese auditors from complying with such requests under national security concerns.
In March, SEC Chair Gary Gensler said that the Chinese authorities faced “a hard set of choices.”
In April, the China Securities Regulatory Commission said it would modify a 2009 rule that restricted offshore-listed firms’ financial data sharing, potentially clearing one obstacle. However, on May 24, in the Annual General Meeting about resolving the lack of audit transparency in China and Hong Kong, Director YJ Fischer said, [quote] “although there have been ongoing and productive discussions between US and Chinese authorities regarding audit inspections and investigations, significant issues remain and time is quickly running out.”
Other companies in the Provisional list include DiDi Global, Kingsoft Cloud Holdings, and China Online Education Group. They have until May 31 to submit evidence disputing identification. Failing to do will result in transferring to the conclusive list.