JD.com and NIO Are Among 80 Companies Added to SEC List for Possible Delisting
JD.com and NIO were among more than 80 companies that were added to a list compiled by the Securities and Exchange Commission for possible delisting if they aren’t more transparent with their financial accounting.
Other companies added to the list include NetEase (ticker: NTES), Pinduoduo (PDD), Bilibili (BILI), and JinkoSolar (JKS). Chinese companies are among the main targets.
The SEC placed the companies on the list under the Holding Foreign Companies Accountable Act, a 2020 law that says any companies that fail to be compliance with U.S. auditing disclosures for three straight years must delist.
JD.com (JD) in a statement released Thursday, said it was aware the company has been identified under the SEC act. JD.com, the Chinese e-commerce company, said it “has been actively exploring possible solutions.”
“The Company will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both Nasdaq and the Hong Kong Stock Exchange,” JD.com said.
NIO also said it has been “actively exploring possible solutions to protect the interest of its stakeholders,” adding that it will “continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both the NYSE and the HKEX in compliance with applicable listing rules.”
American depositary receipts of JD.com fell 2.4% in premarket trading Thursday to $61.65 The stock rose 0.7% in Hong Kong. U.S.-listed shares of NIO tumbled 3.5%.