Author/Wu Yuanchun

According to the updated list on the official website of the Securities and Exchange Commission (SEC), 11 Chinese stocks were included in its "pre-delisting list" on the 9th local time. Hong Kong's Economic Daily, which is concerned about this change, reported on the 10th that the SEC announced the 7th batch of Chinese stocks "pre-delisting list" on May 9 local time, and then included 11 Chinese stocks in the "pre-delisting list" with the Foreign Company Accountability Law (HFCAA). Previously, in response to the SEC's inclusion of a number of Chinese companies in the "pre-delisting list", Chinese Foreign Ministry spokesman Zhao Lijian said on the 5th that this does not mean that relevant companies will inevitably be delisted. Whether these companies are delisted or continue to be listed in the United States depends on the progress and results of Sino-US audit and regulatory cooperation.

According to the list released by the official website of the SEC, those included in the "pre-delisting list" include Didi, Lu Jinsuo, Kingsoft Cloud, Cook Music, Qutoutiao, 51Talk, Antelope Enterprise, Oxygen Technology, Love Click, Dingdong Grocery Shopping and Lanting Gathering.

According to the Economic Daily, the SEC said that the above-mentioned Chinese stocks must submit evidence before May 31 to prove that they do not have a reason to be delisted, otherwise they will be included in the "confirmed delisting list".

Taiwan's "China Times Electronic News" said that this is the 7th batch of "pre-delisted" Chinese stocks announced by the SEC since the beginning of March, so far the US side has included 139 Chinese stocks in the list. A total of 23 companies in the previous four batches have passed the defense period and have been included in the "confirmed delisting list".

The SEC has previously placed a number of Chinese companies on a list that could be expelled from U.S. stock exchanges. Chinese Foreign Ministry spokesman Zhao Lijian pointed out on May 5 that we have noted the relevant situation. China's securities regulators have communicated with U.S. regulators on this issue. It is understood that the inclusion of Chinese enterprises in the relevant lists is a relevant step for the US regulatory authorities to implement their domestic laws. This does not mean that the relevant enterprises are necessarily delisted. Whether these companies are delisted or continue to be listed in the United States depends on the progress and results of Sino-US audit and regulatory cooperation.

Zhao Lijian said that China has always insisted on solving the audit supervision problems of Chinese-listed companies listed in the United States through equal cooperation. This is in the interest of capital markets and global investors in both countries. Recently, the regulatory authorities of both China and the United States have told the media that the two sides are maintaining close communication on audit and regulatory cooperation and focusing on promoting this cooperation. We are pleased to see the U.S. and Chinese regulators reach a cooperative arrangement that satisfies the regulatory requirements and legal requirements of both sides.