Chinese firms listed in the U.S.-based IPO’s fate is a serious topic lately. Concern about delisting is highly inevitable although Chinese regulators have arranged further corporations. U.S. regulator audits continue to find audit failure. Worse, five more Chinese firms would meet delisting fate.
Previously, The U.S. The Securities and Exchange Commission cannot inspect the five U.S.-based Chinese firms audits under Holding Foreign Companies. The firms are those of giant firms in China. Baidu, for example, is the biggest internet company in China. The other four are IQIYI the video platform, Futu Holdings the online brokerage, agricultural services company Nocera, and the biotech firm CASI Pharmaceuticals.
According to the SEC, those kinds of delisted targets are normal procedure. But they are still targets, it does not mean that they have been delisted. Still, under the SEC inspections, those companies must make progress, especially in the audit for at least two years. So far, the decision whether or not they meet delisted fate, depends on that.
CSRC in a statement responded about the coordination with Chinese regulators.
The round’s discussion ended with the result that everything depends on the wisdom and initial will of both sides.
ZKH in this situation has not decided yet on whether or not they enter the listing venue. The company wishes to enter the U.S. market but it seems like CSRC is hard to please these days. Moreover, due to the recent unstoppable delisting, U.S. investors become very cautious of the U.S.-based Chinese firms.
Wuxin Technology, a Chinese Internet of Things (IoT) company tried their luck in the U.S. market. Based on this experience, the company has filed for a Nasdaq IPO thanks to Prime Number Capital without fundraising size disclosed. ZKH could learn from Wuxin, Wuxin has successfully entered the market due to its auditor choice. Wuxin chose TPS Thayer of Sugar Land Texas. With PCAOB, the firm meets regular inspections very well.
