Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter
According to Reuters, the SEC’s international affairs chief, YJ Fischer said that there are “significant issues remain” in reaching a deal with China regarding the US-listed firms. Fischer told that the US PCAOB (Public Company Accounting Oversight Board) would need to complete China audit inspections by November 22 to meet a Chinese company 2023 delisting deadline. Fischer added that Chinese authorities should consider delisting from U.S. exchanges a “subset of issuers” that it deems “too sensitive to comply” with US rules, Reuters reported.
Earlier this month, US SEC updated the Holding Foreign Companies Accountable Act (HFCAA) list adding NIO, XPeng and 80 other Chinese companies. According to the law approved in late 2020, the companies on the list used an auditor “whose working paper cannot be inspected or investigated completely by the PCAOB”. Previously, on April 22, also the Chinese automaker LI Auto was added to the HFCAA list.
At the time, NIO answered that has been “actively exploring possible solutions to protect the interest of its stakeholders”. The EV maker also 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”. XPeng had not officially responded to the matter.
Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter
