sec-adds-alibaba-to-list-of-chinese-companies-facing-delisting

SEC Adds Alibaba to List of Chinese Companies Facing Delisting

U.S.-listed American depositary shares of Alibaba have lost 55% of their value over the past 12 months.Photo: Qilai Shen/Bloomberg News

NEW YORK—The U.S. Securities and Exchange Commission on Friday added Alibaba Group Holding to a list of Chinese companies at risk of being delisted from the U.S. exchanges if their auditors can’t be inspected before spring 2024.

Under the Holding Foreign Companies Accountable Act of 2020—which took effect in 2021—the U.S. can ban the trading of securities of companies whose auditors can’t be inspected by the American audit watchdog for three consecutive years.