Chinese social media platform Weibo added to SEC delisting watchlist – Pandaily

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Beijing-based social media platform Weibo on Wednesday became the sixth Chinese company to be added to a delisting watch list by the United States Securities and Exchange Commission (SEC).

According to the official SEC website, Weibo Corporation must provide evidence by April 13 to prove that he does not have conditions to be struck off. Otherwise, it will be included in the “determined delisting list”.

On March 8, five Chinese companies including BeiGeneYum China, Zai Lab Limited, ACM Research (Shanghai) and Hutchmed, were on the “pre-delisting list”. They also had to provide evidence to the SEC by March 29.

The SEC’s decision is based on the Holding Foreign Companies Accountable Act (HFCAA) passed by the US Congress in December 2020. The law proposes additional disclosure requirements for foreign companies listed in the domestic market: if a domestically listed company employs an accounting firm in a jurisdiction outside the United States to issue audit reports for it, it may be recognized by the SEC as a “Commission Identified Issuer”, because the accounting firm cannot be reviewed by the Public Company Accounting Oversight Board (PCAOB). If a company is listed as a “recognized issuer” for three consecutive years, the SEC will prohibit the company’s shares from trading on US stock exchanges or in other forms in the country.

SEE ALSO: Weibo reaches Total 2021 Revenue of $2.26 billion

On March 11, the China Securities Regulatory Commission responded to the SEC’s identification of the aforementioned five U.S. listed companies as “related issuers” with HFCAA delisting risks. The Chinese regulator said it was a normal step for US regulators to implement the HFCAA and related rules, stressing that China “always adheres to the spirit of openness and cooperation “, but also “resolutely opposes the bad practice of politicizing the supervision of securities by some”. forces.”

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