Delisting Threat from SEC Causes Alibaba Shares in Hong Kong to Plunge

The shares of Alibaba Group Holdings Ltd., listed on the Hong Kong stock exchange, continue its downward slide after the US federal regulatory authority included the company to a growing list of Chinese companies that face delisting procedures.

Even though it had recently pared losses to about 3%, as per early trading reports on Sunday night, Alibaba shares slid almost 5.1% in Hong Kong.

More than 250 Chinese companies are facing delisting on Wall Street due to compliance failure in financial audit requirements. On Friday Alibaba’s US shares slid more than 11%, after the US Securities and Exchange Commission (SEC) added it to the list. It was also reported on Friday, that Alibaba co-founder Jack Ma is planning to give up control of Ant Group, the Chinese Communist Party’s (CCP) financial technology company, closely related to Alibaba.

Alibaba informed last week that it is planning to apply for a second primary listing in Hong Kong, fearing possible delisting from Wall Street. After going public on the New York Stock Exchange in 2014, Alibaba had completed a secondary listing in Hong Kong in 2019.

Analysts expect Alibaba to post its first ever decline in quarterly revenue which is scheduled to be reported on Thursday. Alibaba’s Hong Kong shares, 9988, are down -3.76% recently, nearly 20% over the past month and 53% over the past year. Its US shares BABA, are down -11.12%, have fallen 23% in the past month and 54% over the past one year.

Picture of Aussie Brief News
Aussie Brief News

Go to First Page and Get the Latest News.

Translator: MOS Health Team – baoliaofen
Design&editor: HBamboo(昆仑竹)

Leave a Reply

Your email address will not be published. Required fields are marked *