More Than 80 Companies, Including China's JD.com, Added in U.S. SEC List, At Risk of Delisting

The Securities and Exchange Commission of the United States added over 80 corporations to its list of organizations facing probable expulsion from American exchanges, including China's JD.com, Pinduoduo (NASDAQ:PDD) Inc, Bilibili (NASDAQ:BILI) Inc, and NetEase (NASDAQ:NTES) Inc.

The SEC enlarged the list on Wednesday, including Chinese businesses listed in the United States, as part of a preliminary lineup under a 2020 law known as The Holding Foreign Companies Accountable Act.

The act, which was signed into law by then-President Donald Trump, seeks to bar foreign-jurisdiction corporations from US stock exchanges if they fail to adhere to American auditing standards for three consecutive years.

Among the other significant Chinese companies added to the SEC's list were JinkoSolar Holding Co Ltd (NYSE:JKS), NIO Inc, and China Petroleum (NYSE:SNP) & Chemical Corp.

According to Reuters, Chinese regulators last month requested that some of the country's US-listed companies, including Alibaba (NYSE:BABA), Baidu (NASDAQ:BIDU), and JD.com, submit additional audit disclosures.

China also proposed revising confidentiality rules for offshore listings in early April, removing a legal impediment to Sino-US audit cooperation and putting the onus on Chinese firms to protect state secrets.

The development comes after a US watchdog stated in March that it was continuing to engage with Chinese regulators on access to their auditors' records, but it remained unclear whether the Chinese government would allow the access necessary by a new US listing law.