The US Securities and Exchange Commission on Tuesday added 12 Chinese companies, including Sohu.com and Connect Biopharma, to its list of stocks facing delisting risks.
The latest additions also include Microvast, China Automotive Systems, Daqo New Energy, OneConnect Financial Technology, Green Vision Biotechnology and Legend Biotech.
The 12 companies will need to provide evidence before or on May 3 to prove that they still meet the conditions for being publicly listed.
This is the fourth batch of companies to be included on the “pre-delisting list” since the beginning of March.
If they fail to prove eligibility, they will be included on the “determined delisting list.” According to the SEC, companies listed in this category need to submit the documents required by the SEC within three years.
If they do not file or file documents that do not meet the SEC’s requirements, they will face immediate delisting after the disclosure of their 2023 annual reports (in early 2024).
On March 8, five Chinese companies, including BeiGene and Yum China, were added to the “pre-delisting list.”
Chinese social media giant Weibo was included on March 23, followed by tech giant Baidu, video platform iQiyi and securities firm Futu Holdings on March 31.
- George Russell
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