The United States Securities and Exchange Commission (SEC) on Wednesday added five Chinese firms to a growing list of companies that may get delisted from domestic stock exchanges. The newly named entities include securities firm Futu Holdings Limited, tech giant Baidu, video platform iQiyi, CASI Pharmaceuticals, and fishery firm Nocera. This is the third batch of Chinese companies to be included on the list since the beginning of March.
According to the SEC, the five companies need to provide evidence before April 20 to prove that they do not meet the conditions to be delisted. If they fail, they will need to submit documents required by the SEC and comply with inspection requirements that apply to all public companies in the U.S.
Firms face removal if they shirk requirements for three straight years, meaning they could be kicked off the New York Stock Exchange and Nasdaq as soon as 2024.
On March 8, BeiGene, Yum China, Zai Lab Limited, ACM Research (Shanghai) and HUTCHMED faced the risk of a forced delisting from American stock exchanges, as they were required to provide the SEC with similar evidence to avoid their possibly removal in March 29. Chinese social media giant Weibo Corporation was also included on the list on March 23, requiring it to submit relevant documents before April 13.