US Authorities Threaten Alibaba With NYSE Delisting

Chinese tech giant Alibaba is the latest company to run afoul of the US Securities and Exchange Commission, which has threatened delisting from US stock exchanges. The Register reports: Alibaba's addition to the SEC's list of nearly 300 companies -- mostly from China -- means that US officials were unable to complete an audit of the company's finances. The 2020 Holding Foreign Companies Accountable Act (HFCAA) gives the SEC the authority to delist companies if it is suspected that financial audits may not be accurate. The news hit Alibaba stock hard on Friday, causing it to drop from $100.52 to $89.37 through the day. In a statement sent to the SEC on Monday, Alibaba said it would "strive to maintain its listing status," and that it would continue to monitor market developments and comply with applicable laws and regulations.

Addition to the SEC's HFCAA list doesn't mean that Alibaba will immediately be removed from the New York Stock Exchange (NYSE). Instead, the notice marks the company's first "non-inspection" year; Alibaba is only actually in danger of delisting if it hands in two more consecutive annual reports that run afoul of the HFCAA. The report that landed the company under scrutiny covered Alibaba's fiscal year ending on March 31, 2022. Companies on the provisional HFCAA list have 15 business days to dispute addition to the list. Along with Alibaba's inclusion last week, pet company Boqii, Cheetah Mobile, ecommerce platform MOGU, manufacturing business Highway Holdings and logistics company Novagant Corp -- all from China or Hong Kong -- were added.

Stop using the

[Anonymous Coward]

subject line as part of your comment.

Not alibaba

[klipclop]

It's the holding company that offers an ADR for alibaba stock in China. These weird loopholes allow Chinese companies to list in the US without any reporting oversight... When you buy these ADRs, you're not a share holder as well. You just own a financial product that allows you to participate in the alibaba share values from the Chinese listed side. Pretty much this shouldn't be allowed and the sec is closing the loophole. (follow the same rules as everyone else listed on us exchanges or get delisted)

Good riddance

[Anonymous Coward]

Last time I ordered something from Alibaba it did not arrive on time, and when I reported it to them, they said I could no longer request a refund. Because I had waited until the end of the delivery window, approximately a month.

So the sender never sent the item, and there was zero protection for me from being scammed.

No thanks, never again.

Re:

[t2000kw]

I had a defective item that they wouldn't give me a refund on. I had PayPay step in but I had to raise the priority of my claim before I got someone to actually review the video showing the defective item in action.

Re:

[bjwest]

Last time I ordered something from Alibaba it did not arrive on time, and when I reported it to them, they said I could no longer request a refund. Because I had waited until the end of the delivery window, approximately a month.

So the sender never sent the item, and there was zero protection for me from being scammed.

No thanks, never again.

Get your refund from your credit card provider. If you used a reputable bank, they should handle your issue quickly.

Why were they listed in the first place?

[Eunomion]

The law won't allow ordinary people to invest in a company in initial series rounds because it's "protecting" us from fraud, but for many years now they just don't enforce listing requirements for public exchanges anyway. Basically, you're not allowed to even try to make the kind of profit margins VCs do unless you're already rich, but what you are allowed to do is throw away hard-earned money on a meaningless casino where you don't technically own or control anything and can't win without someone else losing.

Glad to see something is moving in a better direction, but I have to ask what the hell they were doing before.