Alibaba Group (NYSE:BABA) Holding will work with the US regulators to maintain its New York listing after a warning from the Securities Exchange Commission (SEC), the Chinese e-commerce giant said in a Monday statement.
The SEC added Alibaba to its watchlist of Chinese companies last Friday, indicating that the US$250bln valued company could be delisted for failing to meet auditing standards.
Over 270 US-listed Chinese companies are at risk of being removed from the exchange in the long-running fracas, as the US regulators demand access to audits papers stored in China.
Alibaba’s board of directors recently agreed to pursue a primary listing on the Hong Kong Stock Exchange, where it currently holds a secondary listing, adding to speculation of a pending New York delisting.
BABA shares took an 11% fall in response to the news.
Other companies on the watchlist include fast food operator Yum China Holdings, biotech firm BeiGene, and social media company Weibo Corporation.