This undated file photo shows a woman walking along Alibaba's headquarters in Hangzhou, Zhejiang province. (WANG ZIRUI / FOR CHINA DAILY)
Alibaba Group Holding Ltd on Monday said it would work to maintain its New York Stock Exchange listing alongside its Hong Kong listing after the Chinese mainland e-commerce giant was placed on a delisting watchlist by US authorities.
Alibaba stock was down 4.5 percent in a near-flat Hong Kong Special Administrative Region market in early trade, following its 11.1 percent decline in New York on Friday.
Alibaba said last week it planned to apply to convert its Hong Kong secondary listing to a dual primary listing which would make it easier for mainland investors to buy its shares
The company on Friday became the latest of more than 270 firms to be added to the US Securities and Exchange Commission's list of mainland companies that might be delisted for not meeting auditing requirements.
The Holding Foreign Companies Accountable Act is intended to address a long-running dispute over the auditing compliance of US-listed mainland firms.
It aims to remove foreign companies from US exchanges if they fail to comply with American auditing standards for three consecutive years. Alibaba on Monday said being added to list meant it was now considered to be in its first 'non inspection' year.
"Alibaba will continue to monitor market developments, comply with applicable laws and regulations and strive to maintain its listing status on both the NYSE and the Hong Kong Stock Exchange," it said in a statement to the Hong Kong bourse.
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US regulators have been demanding complete access to audit working papers of New York-listed mainland companies.
The US rules give mainland companies until early 2024 to comply with auditing requirements, though Congress is weighing bipartisan legislation that could accelerate the deadline to 2023. Beijing has said both sides are committed to reaching a deal to solve the audit dispute.
Alibaba, founded by billionaire Jack Ma, said last week it planned to apply to convert its Hong Kong secondary listing to a dual primary listing which would make it easier for mainland investors to buy its shares.
A dual listing would allow Alibaba to apply for admission to Stock Connect, the scheme connecting the HKSAR and mainland exchanges. Analysts estimated there could be $21 billion worth of inflows from mainland investors into Alibaba stock through Stock Connect.
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