BRIEF—US de-listing of Chinese stocks

Chinese stocks listed in the USA had a bad day on Thursday, as the Securities and Exchange Commission (SEC) named five companies from China that could be de-listed for failing to abide by American accounting regulations, according to Seeking Alpha.

Among these are three Chinese biotech firms: BeiGene, Zai Lab and Hutchmed.

They have been cited for not adhering to the Holding Foreign Companies Accountability Act, which became law in December 2020.

That statute gives the SEC the power to delist firms if they fail to allow US regulators to review their audits for three years in a row.

"Investors recently have been nervous from many regulatory uncertainties in China, geopolitical risks involving China/US and multiple SEC-related inquiries involving Chinese stocks, all of which have increased uncertainty on China stocks,” said Jefferies analyst Michael Yee.