The United States Securities and Exchange Commission (SEC) added more than 80 companies, including China's JD.com, to its list of entities facing possible expulsion from American exchanges. This is amid a long-term audit stalemate between the US and China.
As quoted by Reuters, Thursday (5/5), the SEC expanded the listing on a provisional list under the 2020 law known as The Holding Foreign Companies Accountable Act (HFCAA) on Wednesday (4/5). It aims to remove foreign jurisdictional firms from US exchanges if they fail to comply with American auditing standards for the third consecutive year.
In a protracted dispute, US regulators have demanded full access to audit paperwork of Chinese companies registered in New York, which are kept in China.
The request has so far been rejected by China on national security grounds. But regulators in both countries are discussing operational details of an audit deal Beijing hopes to sign this year.
JD.com said it is aware that the company has been identified by the SEC under the Act, and is actively exploring possible solutions.
"The Company will continue to comply with applicable laws and regulations in China and the United States, and endeavor to maintain its listing status on the Nasdaq and the Hong Kong Stock Exchange," JD.com said in a statement.
Other major Chinese companies added to the SEC's list include JinkoSolar Holding Co Ltd, China Petroleum & Chemical Corp, Bilibili Inc and NetEase Inc.
Sources told Reuters in March that Chinese regulators had asked several US-listed companies, including Alibaba, Baidu, and JD.com, to prepare more audit disclosures.
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