July 29 (Reuters) - Alibaba Group Holding Ltd
on Friday became the latest company to be added to the
U.S. Securities and Exchange Commission's list of Chinese
companies that might be delisted.
Alibaba's shares were down 11% at $89.37 at the closing
bell, ending the month 21.4% lower. The e-commerce giant's
shares were already feeling the pressure after reports suggested
Ma was planning to cede control of financial technology firm
Ant, an affiliate of Alibaba.
Alibaba is among more than 270 Chinese companies listed in
New York identified as being at risk of delisting under the
Holding Foreign Companies Accountable Act (HFCAA), intended to
address a long-running dispute over the auditing compliance of
U.S.-listed Chinese firms.
U.S. regulators have been demanding complete access to audit
working papers of New York-listed Chinese companies, which are
stored in China.
While Washington and Beijing are in talks over the dispute,
KFC operator Yum China Holdings, biotech firm BeiGene
Ltd, Weibo Corp and JD.Com are among
firms that could face delisting.
Alibaba's IPO in 2014 was the largest debut in history at
that time and paved the way for other Chinese companies seeking
fresh capital to list on the U.S. stock exchange.
Founded in 1999 in Jack Ma's apartment and catering to a
large population in China, the e-commerce company has seen the
wrath of both U.S. and Chinese regulators amid a broad
crackdown, battering its shares since 2020.
It now plans to add a primary listing in Hong Kong,
targeting investors in mainland China.
"Applying for the primary listing status in Hong Kong
doesn't necessarily mean they think they're going to get
delisted in the U.S... it's just to mitigate that potential
risk," said Bo Pei, an analyst with U.S. Tiger Securities.
Others added to the list on Friday include Mogu Inc
, Boqii Holding Limited, Cheetah Mobile Inc
and Highway Holdings Limited.
(Reporting by Nivedita Balu in Bengaluru; Editing by Krishna