Beijing (Gasgoo) – On April 21, the SEC added several foreign companies listed in the U.S. to the Holding Foreign Companies Accountability Act (HFCAA) list.
Photo: Li Auto
Companies have until May 12 to submit to the SEC evidence to challenge the action.
Li Auto issued a response stating that the HFCAA list is something that all Chinese companies listed in the US will experience every year after the publication of their annual reports. Inclusion does not mean exclusion from the list. In fact, under local regulations, the HFCAA has stated that the company will be delisted from the U.S. Stock Exchange if the company fails to submit audit working papers to the Public Company’s Accounting Supervisory Board for three consecutive years.
Lee Auto further explained that as a responsible company that values its investors, the company has been actively looking for a solution.
On the one hand, Li Auto has successfully launched a double primary listing on the Hong Kong Stock Exchange (HKEX), allowing the exchange of shares between the US and Hong Kong. By doing so, American Li Auto investors can easily switch to HKEX at any time. Also, as the main list, the position of Li Auto is not subject to the rules of US exchanges.
On the other hand, Li Auto actively cooperates with domestic and foreign authorities in audit work. Being on the HFCAA list will not affect its actual business operations.
Li Auto: The HFCAA list does not affect performance
Source link Li Auto: The HFCAA list does not affect performance