In the News: Alibaba Faces Delisting; China-Switzerland Stock Connect; and SZSE ESG Indices

August 02, 2022 | BY

Hugo Yeung

The U.S. adds Alibaba to delisting list, citing audit non-compliance; Integration of Shenzhen and Swiss bourses; Six ESG-linked indices launched in Shenzhen

Alibaba sign

Credit: zhu difeng/Adobe Stock

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Alibaba Added to Delisting Watchlist

On July 29, Alibaba was added to the U.S. Securities and Exchanges Commission's (SEC) delisting watchlist, spooking investors and causing the stock to plummet more than 11% to $89.37 at the close of Friday.

Under the U.S. Holding Foreign Companies Accountable Act (HFCAA), an issuer of securities will be prohibited from trading if they fail to open their books to the Public Company Accounting Oversight Board (PCAOB) for three consecutive years. Investors are concerned that the New York-listed conglomerate may follow in Didi's footsteps. Didi delisted in May. Alibaba recently announced plans to seek a dual-primary listing on the Hong Kong Stock Exchange (HKEX), where it currently has a secondary listing, further fueling delisting concerns.

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