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Chinese companies risk delisting from US stock exchanges … What options are available?


Last week, the US Securities and Exchange Commission (SEC) added more than 80 companies to its list of companies at risk of delisting.

This comes when US and China officials are in talks to resolve a long-standing dispute over New York-listed Chinese companies’ compliance with audits, according to Reuters.

This is the last step in solving the problems in suspended and, in failure to reach an agreement could mean the end of the listing of Chinese companies on the New York Stock Exchange.

The list of companies threatened with delisting includes e-commerce giant JD.com and China Petroleum & Chemica.

In an interview with Al Arabiya, Anthony Sassin, chief investment strategist at Kraneshares, said that companies listed in US markets are forced to undergo financial audits.

Sasin added that this dispute can be resolved easily, but it has been politicized, explaining that the United States has not offered China the opportunity to find compatible solutions with all sides.

He pointed out that reports indicate that China will accept concessions, but it is not specified when the crisis will end.

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Sassin expected most of the problems of threatened Chinese companies to be solved, but there will be some companies that deal with the state and work in sensitive sectors.

He suggested that “Ali Baba” and “Tencent” would be subject to the standard of control required, to ensure the continuation of the listing on the US stock exchanges.

On the options available to companies in case of delisting, Sassin said they can be re-listed in other stock exchanges, such as Hong Kong or China, and thus keep investors moving forward.

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