Is Alibaba Also Going To Be Delisted From The Us Market

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Is Alibaba Also Going To Be Delisted From The Us Market

Is Alibaba Also Going To Be Delisted From The US Market?

Several Chinese companies, such as Chemical Corp, PetroChina Co, and China Petroleum, have announced that they will delist from the US exchanges. This has raised concerns that the Chinese e-commerce company Alibaba may also announce something similar in the near future.

Recently, US regulators have added Alibaba company to the list of companies that could be delisted. According to the laws that dictate, foreign companies, they must comply with the US public company accounting oversight board or risk getting delisted.

Alibaba Intends To Stay Listed

Alibaba is one of those companies which are regarded as VIEs. These companies usually have variable interests in different sectors and are thus called VIEs. Both the US SEC and the Chinese regulators have been attempting to stop this practise for obvious reasons.

Also the Alibaba group is committed that it wants to stay listed on the New York Stock Exchange. In fact, the company has also opted for a listing on the Hong Kong Stock exchange as well.

Many people automatically assume that the foreign companies act is only made to target the Chiense companies. In reality, the reason for this targeting can be attributed towards the rising tensons from the US and China.

Just few months ago, the US authorities have delisted many reputable Chiense companies from the market. However, it has also lead to billions of dollars loss to the US investors who bad bought shares of such companies.

One such company which was effected heavily is the Uber as its equity investments were hurt pretty badly. Another company which lost a lot of money was Softbank due to its investments in the Didi company.

The private equity company Softbank has also recently sold 242 million shares of Alibaba. This was probably done to reduce the company's exposure to the Chinese enterprises.

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