Alibaba struggles to retain New York listing amid audit dispute | Photo credits: © Alibaba Group Holding Limited
Aug 1 (Reuters) – Alibaba said on Monday it would strive to maintain its listing on the New York Stock Exchange alongside that of Hong Kong, after the Chinese e-commerce giant was placed on a watchlist by investors. American authorities.
Alibaba stock was down 4.5% in the nearly flat Hong Kong market in early trade, after falling 11.1% in New York on Friday.
On Friday, the company was added to a list of more than 270 Chinese companies, compiled by the U.S. Securities and Exchange Commission, that could be delisted for failing to meet audit requirements. .
U.S. regulators have demanded full access to working papers from audits of New York-listed Chinese companies that are in China.
Beijing prohibits foreigners from inspecting the working papers of local accounting firms.
US rules give Chinese companies until early 2024 to comply with audit requirements, but Congress is currently considering bipartisan legislation that could accelerate the deadline to 2023.
China said the two sides are determined to find an agreement to resolve the dispute.
Alibaba said last week it planned to apply to convert its secondary listing in Hong Kong to a dual primary listing, which would make it easier for mainland Chinese investors to buy its shares.
A dual listing would allow Alibaba to apply for admission to Stock Connect, the system that links stock exchanges in Hong Kong and the mainland. Analysts estimate that mainland Chinese investors could pump $21 billion (€20.54 billion) into Alibaba shares through Stock Connect. (Reporting Scott Murdoch in Hong Kong and Josh Horwitz in Shanghai; French version Augustin Turpin, editing by Kate Entringer)