12 Chinese Companies Added to SEC Delisting Watchlist
The United States Securities and Exchange Commission (SEC) added 12 China Concepts Stock companies to a delisting watchlist on Tuesday.
The newly named entities include Microvast, China Automotive Systems, Daqo New Energy Corp., Connect Biopharma, OneConnect Financial Technology Co., Ltd., Green Vision Biotechnology Corp., Legend Biotech, Sohu.com Limited, Studio City International Holdings Limited, Melco Resorts & Entertainment Limited, Logiq and Noah Holdings. According to the SEC, these 12 companies will need to provide evidence before or on May 3 to prove that they still meet the conditions for being publicly listed.
This is the fourth batch of China Concepts Stock firms to be included on the “pre-delisting list” since the beginning of March. If they fail to prove their eligibility, they will be included on the “determined delisting list.” According to legal documents on the SEC website, companies listed in this category need to submit the documents required by the SEC within three years. If they do not file or file documents that do not meet the SEC’s requirements, they will face immediate delisting after the disclosure of their 2023 annual reports (early 2024).
On March 8, five Chinese companies, including BeiGene, Yum China, Zai Lab Limited, ACM Research (Shanghai) and Hutchmed, were listed on the “pre-delisting list.” Chinese social media giant Weibo Corporation was also included on the list on March 23. Another five companies including tech giant Baidu, video platform iQiyi and securities firm Futu Holdings Limited were included on the list on March 31.
SEE ALSO: Five Chinese Firms Including Baidu Face Possible Delisting in U.S.
The first batch of five companies that were placed on the “pre-delisting list” at the beginning of March, including BeiGene, have now been moved to the “determined delisting list” as the March 29 deadline for appeals has passed.
