Other companies with dual listings in the United States and Hong Kong also declined sharply.
The broad drop in China’s internet and tech stocks, which are usually listed both in New York and Hong Kong, was because of “worries that more companies will be put on the [US] list in the coming months,” said Citi analysts in a research report on Friday.
The HFCAA, which became law in December 2020, prevents companies that refuse to open their books to US accounting regulators from trading on US stock exchanges.
The names cited by the SEC on Thursday are fast-food company Yum China Holdings, tech firm ACM Research, biotech group BeiGene, Zai Lab, as well as pharmaceutical company Hutchmed.
They are the first among the roughly 270 Chinese firms that could be delisted from the New York Stock Exchange or the Nasdaq for not complying with the rules.
