The U.S. Securities and Exchange Commission (SEC) on May 4 added over 80 companies to its list of entities that face possible expulsion from American exchanges.
Among those listed are some of China’s most prominent tech companies, such as e-commerce company JD.com, agriculture-focused e-commerce platform Pinduoduo Inc., video-sharing platform Bilibili, and internet technology company NetEase Inc.
Those entities now face delisting within three years if they fail to allow U.S. regulators access to their books under the Trump-era law that requires foreign companies trading on American exchanges to meet U.S. accounting standards.
Trump signed the Holding Foreign Companies Accountable Act (HFCA Act) into law in 2020 with the aim to protect investors from foreign companies that don’t comply with U.S. audit standards.
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