Wall Street’s main watchdog has long been expected to crack down on about 200 New York-traded firms with parent companies based in China and Hong Kong because the jurisdictions refuse to allow the inspections by American officials. The SEC’s publication of companies over the past several weeks has jarred investors who’d been hoping for a deal between regulators in Beijing and Washington.
US regulators added more than 80 companies, including JD.com Inc, Pinduoduo Inc and Bilibili Inc, to an expanding list of firms that face possible expulsion from American exchanges because of Beijing’s refusal to allow access to the businesses’ financial audits.
The Securities and Exchange Commission on Wednesday put the corporations on a provisional lineup of US-listed Chinese entities that face delisting under a 2020 law, starting a three-year clock to comply with inspection requirements. Some of the largest Chinese companies traded on US exchanges, including China Petroleum & Chemical Corp, JinkoSolar Holding Co, NetEase Inc, and NIO Inc were also added.
