What should you do if you own US-listed Chinese stocks ordered by SEC to delist?
By Dr Wealth  •  May 12, 2022
Recently, the US Securities and Exchange Commission (SEC) has added more than 80 companies to its list of companies that may be ordered to delist from US exchanges., Pinduoduo, and NetEase are among the companies on an ever-expanding list that have been found to have breached a 2020 law known as the Holding Foreign Companies Accountable Act (HFCAA). To recap, HFCAA aims to delist foreign-jurisdiction companies from US stock exchanges if they fail to meet American auditing standards for three years in a row. According to the statute, publicly listed companies that refuse US regulators’ audits can be delisted after three years of non-compliance. While the official reason for the bill was to combat financial fraud within US exchanges, such as Luckin Coffee‘s case, many saw it as the US regulator pushing back against China. On the bright side, following the US statement in March that it would continue to...
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By Dr Wealth
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