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Baidu
inventory was dropping Thursday after U.S. regulators added the Chinese language search large to its rising record of firms that could possibly be faraway from American inventory exchanges.
The Securities and Change Fee on Wednesday added Baidu (ticker: BIDU) and 4 different Chinese language firms to a provisional watchlist of overseas firms that face delisting in the event that they don’t permit U.S. regulators to evaluation their audits for 3 consecutive years. Chinese language regulation at the moment forbids firms from doing so.
Baidu’s shares in Hong Kong fell 3.4%. American depositary receipts of Baidu have been down 2% in premarket Thursday after falling 2.6% on Wednesday.
In a press release on Thursday, Baidu mentioned that it understood the SEC’s motion could have resulted from the submitting of its annual report on Type 20-F for the fiscal yr ended Dec 31, 2021.
“The Firm understands the SEC made such identification pursuant to the [Holding Foreign Companies Accountable Act] and its implementation guidelines issued thereunder, and this means that the SEC determines that the Firm used an auditor whose working paper can’t be inspected or investigated fully by the Public Firm Accounting Oversight Board.”
“The Firm has been actively exploring potential options,” Baidu mentioned within the assertion, including that it’s going to proceed to adjust to relevant legal guidelines and rules in each China and the U.S. and “attempt to keep up itslisting standing on each Nasdaq and The Inventory Change of Hong Kong Restricted.”
The SEC additionally added on-line brokerage platform
Futu Holdings
(FUTU), aquaculture tools supplier
Nocera
(NCRA), biopharmaceutical firm
Casi Prescription drugs
(CASI), and video streaming platform
iQIYI
(IQ) to its provisional record for potential delistings, bringing the entire variety of firms recognized by the regulator to 11.
The SEC’s delisting push focusing on Chinese language firms provides additional uncertainty to unstable Chinese language tech shares, which have been below strain following Beijing’s regulatory crackdowns.
Write to Lina Saigol at lina.saigol@dowjones.com
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