U.S SEC adds JD.com to list of Chinese firms facing possible delisting

The U.S. Securities and Exchange Commission (SEC) has added over 80 firms, including China’s JD.com to a list of firms that may be delisted from American exchanges.

JD.com and the other 80 firms face possible expulsion from American bourses amid a long-running auditing standoff between the United States and China.

On Wednesday, the SEC expanded the list on a provisional lineup under a 2020 law known as The Holding Foreign Companies Accountable Act (HFCAA).

The SEC is trying to remove foreign-jurisdiction companies from U.S. bourses if they fail to comply with American auditing standards for three years in a row.

U.S. regulators have been demanding complete access to audit working papers of New York-listed Chinese companies, which are stored in China.

The request has so far been denied by China on national security grounds.

Regulators in the two countries are discussing operational details of an audit deal that Beijing hopes to sign this year.

Other large Chinese companies that were added to the SEC’s list were JinkoSolar Holding Co Ltd, China Petroleum & Chemical Corp, Bilibili Inc, and NetEase Inc, among others.