China’s Alibaba strives to keep New York Stock Exchange listing amid audit dispute

The e-commerce platform might be delisted for not meeting American auditing requirements

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 e-commerce giant was placed on a delisting watchlist by U.S authorities.

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Alibaba stock was down 4.5% in a near-flat Hong Kong market in early trade, following its 11.1% decline in New York on Friday.

The company on Friday became the latest of more than 270 firms to be added to the U.S. Securities and Exchange Commission’s list of Chinese companies that might be delisted for not meeting auditing requirements.

The Holding Foreign Companies Accountable Act (HFCAA) is intended to address a long-running dispute over the auditing compliance of U.S.-listed Chinese firms.

It aims to remove foreign companies from U.S. 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.