Alibaba striving to maintain US listing amid delisting fears

Aug 1, 2022, 4:25 AM | Updated: 5:47 pm

HONG KONG (AP) — Chinese e-commerce firm Alibaba said Monday that it wants to keep its shares listed in both New York and Hong Kong, days after U.S. regulators included it in a list of companies that may be delisted for not complying with auditing requirements.

The U.S. Securities and Exchange Commission has said foreign companies face having their shares delisted if they don’t give American regulators access to their financial statements and auditing process as required of other companies around the world.

The addition of Alibaba to the list is the latest blow as it suffers the fallout from Beijing’s regulatory crackdown on the technology industry.

Alibaba’s inclusion among the companies potentially facing delisting follows its announcement last week that it wants to pursue a primary listing in Hong Kong, where it now has a secondary listing. That move would enable Alibaba to tap a wider base of investors, including those in mainland China.

“Alibaba will continue to monitor market developments, comply with applicable laws and regulations and strive to maintain its listing status on both the NYSE and the Hong Kong Stock Exchange,” the company said in an announcement filed to the Hong Kong stock exchange Monday.

The company said that the fiscal year that ended March 31, 2022, was its first “non-inspection” year under regulations that say a company that goes three years without complying with audit requirements will be forced to delist.

Alibaba’s Hong Kong stock price plunged 3.76% in Hong Kong on Monday, closing at 89.60 Hong Kong dollars.

The move by the SEC to include Alibaba for possible delisting could be in retaliation for its plans to seek the primary listing in Hong Kong, said Francis Lun, an investment manager and a veteran market commentator.

Alibaba is one of the most heavily traded Chinese companies in the U.S.

“If you look at the stock price, investors are very pessimistic (about Alibaba),” Lun said. Alibaba’s New York-listed stock is down over 55% over the last 12 months.

Alibaba was fined a record $2.8 billion for anti-monopoly violations, and regulators scrutinized its financial affiliate Ant Financial closely after Ant was ordered to halt its initial public listing days before it was due to go public. The company has also seen slowing growth amid COVID-19 uncertainties and a general slowdown in the Chinese economy.

The primary listing in Hong Kong is expected to be completed by the end of this year.

Alibaba first went public in New York in September 2014 in what was then the world’s biggest initial public offering at $25 billion. It completed a secondary listing in Hong Kong in November 2019.

Other Chinese firms seeking a primary listing in Hong Kong include cloud computing service provider Kingsoft Cloud Holdings and video sharing site Bilibili Inc.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
6 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
14 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
14 days ago
Tom Brundy points to a newly built irrigation canal on one of the fields at his farm Tuesday, Feb. ...
Associated Press

Southwest farmers reluctant to idle farmland to save water

There is a growing sense that fallowing will have to be part of the solution to the increasingly desperate drought in the West.
21 days ago
A young bison calf stands in a pond with its herd at Bull Hollow, Okla., on Sept. 27, 2022. The cal...
Associated Press

US aims to restore bison herds to Native American lands after near extinction

U.S. officials will work to restore more large bison herds to Native American lands under a Friday order from Interior Secretary Deb Haaland.
21 days ago
Children play in a dried riverbed in Flassans-sur-Issole, southern France, Wednesday, March 1, 2023...
Associated Press

Italy, France confront 2nd year of western Europe drought

ROME (AP) — Bracing for Italy’s second consecutive year of drought for the first time in decades, Premier Giorgia Meloni huddled with ministers Wednesday to start mapping out an action plan Wednesday, joining France and other nations in western Europe grappling with scant winter rain and snow. Meloni and her ministers decided to appoint an […]
23 days ago

Sponsored Articles

(Photo by Michael Matthey/picture alliance via Getty Images)...
Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.
(Pexels Photo)...

Sports gambling can be fun for adults, but it’s a dangerous game for children

While adults may find that sports gambling is a way to enhance the experience with more than just fandom on the line, it can be a dangerous proposition if children get involved in the activity.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
Alibaba striving to maintain US listing amid delisting fears