Last week, the US Securities and Exchange Commission (SEC) added more than 80 companies to its list of companies facing delisting.
It comes as officials from the United States and China are in talks to settle a long-running dispute over the compliance of Chinese companies listed in the New York Auditsaccording to Archyde.com.
This is the last stage to resolve the outstanding problems, and in the event of failure to reach a settlement, it may be the end of the listing of Chinese companies on the New York Stock Exchange.
The list of companies threatened with delisting includes e-commerce giant JD.com and China Petroleum & Chemica.
In an interview with Al Arabiya, Anthony Sassin, chief investment strategist at Kraneshares, said that companies listed in the US markets are forced to undergo financial audits.
Sasin added that this dispute can be resolved easily, but it has been politicized, explaining that the United States did not provide an opportunity for China to find solutions that are compatible with all parties.
He pointed out that the reports indicate that China will accept concessions, but it is not specified when the crisis will end.
Sassin expected that most of the problems of threatened Chinese companies will be solved, but there will be a few companies that deal with the state and work in sensitive sectors.
He suggested that “Ali Baba” and “Tencent” would be subject to the required control standards, to ensure continued listing on US stock exchanges.
On the options available to companies if they are delisted, Sassin said that they can be re-listed in other stock exchanges, such as Hong Kong or China, and thus keep the investors going.