On July 29, Alibaba was included in the "pre -delisting list" by the US Securities Regulatory Commission in accordance with the "Foreign Enterprise Accountability Act". According to the bill, foreign issuers listed in the United States hired accounting firms from judicial jurisdictions outside the United States to issue audit reports, which cannot meet the audit requirements of accounting firms for accounting firms for accounting firm (PCAOB). Including the "Pre -Delivery List". At this point, the agency has included 159 Chinese stock companies including Baidu, JD.com, Bilibili, and Pinduoduo.
After boarding the pre -delisting list, the relevant company can prove to the SEC within 15 days to prove that they do not have the conditions to be passed, otherwise they will be transferred to the determined list. If the company, which is included in the determination list, cannot meet the PCAOB's inspection request for auditors within three years, the company will be banned by the US Securities Regulatory Commission.
This year became Alibaba's first "unpaid" year. According to the "Accountability Act of Foreign Companies", if the PCAOB (U.S. Listed Companies Accounting Supervision Committee) has been fully inspected or investigated on the three consecutive "unpaid" annuals in charge of auditing US listed companies' financial statements, the company's company's Securities will be banned from trading on any national stock exchange (including the New York Stock Exchange) or on the "Overseas Strike" market on the US "Stock Exchange) in the United States.
Perhaps it was a pre -judgment on the risk of entering the "pre -delisting list". Earlier (July 26), Alibaba applied for the two major listings in the Hong Kong Stock Exchange and the NYSE.
After the reform of the Hong Kong Stock Exchange's listing system in 2018, most Chinese technology companies, including Alibaba, choose to list them in the United States and Hong Kong. "Second Listing" model.
Compared with the second listing, the stock will be traded in another capital market in another capital market to achieve cross -market circulation. The two main listing is listed as the first listing place. Essence This makes the dual main listing method have stronger risk hedging capabilities, that is, listed companies' delisting in one market will not affect its listing status. Listed companies can transfer all stocks to another listing place, thereby avoiding the risk of delisting risks. And reducing the cost of delisting. Although the second listing is simple, once the listing is forced to delist in the main list, stocks traded in the second place are also facing delisting and liquidation.
After the two major listings, related companies can better cope with the uncertainty of a single market, so as to better cope with the challenges brought by changes in the external environment. In the recent period, the double main listing has become the mainstream model of China stock market returning to Hong Kong. As of now, nine of the nine companies including Zhihu, Shell, Xiaopeng, and ideal have been listed in the United States and Hong Kong.
In 2019, Ali belongs to the second listing in Hong Kong. New York is still the main place of listing. The Hong Kong Stock Exchange is only issued by US stocks. The purpose is to provide more trading space for US stock investors, and the stock price is also linked to U.S. stocks. After the second listing is changed to dual main listing, the issuance of independent Hong Kong stocks will be issued. This move will attract international investors to increase Ali Hong Kong stocks and inject new liquidity into the Hong Kong stock market.
Chen Da, an executive director of He Shouchuang (Hong Kong), told First Financial reporters that companies using the "second listing" model have not yet entered the scope of Hong Kong stocks; Enter the scope of Hong Kong stocks. This time Alibaba applied for dual listing, and its target existence was expected to enter Hong Kong Stock Connect.