Sohu.com Limited filed a 6-K form to the US Securities and Exchange Commission (SEC) on Wednesday, after it was added to a group of firms listed under the Holding Foreign Companies Accountable Act. The firm says it does not intend to contest the SEC’s provisional accreditation.
Sohu.com said that it tried to explore other actions, but had not yet made determinations. The company cannot assure investors that delisting or other alternatives will not adversely affect the market value of its ADS.
On April 12, the SEC listed 12 China concepts stock companies such as Sohu, OneConnect Financial Technology Co. Ltd., Legend Biotech and CChina Automotive Systems, Inc. on a list for “pre-delisting.” According to the SEC, the deadline for these companies to submit their arguments is May 3, local time. After this date, the companies may be confirmed for delisting.
According to the Holding Foreign Companies Accountable Act published by the SEC, companies listed in the “Determined Delisting List” need to submit the documents required by the SEC within three years from 2021. If the companies in the “Determine Delisting List” do not submit or the documents submitted do not meet the SEC requirements, they will theoretically face immediate delisting after disclosing the 2023 annual report.
It is worth noting that this is the fourth batch of China concepts stock companies to be included in the list since March this year. Previously, 11 enterprises, including Baidu, iQiyi, BeiGene and Weibo Corporation, were listed for “pre-delisting” or “confirmed delisting” by the SEC.
The China Securities Regulatory Commission previously stated that China and the US have held several meetings to discuss and solve the remaining problems in audit supervision between the two countries. Both sides were reportedly willing to address such differences.