Alibaba’s US depository receipts plunge as it faces delisting

Alibaba's American depositary receipts slumped by 11% last week after being added to the US Securities and Exchange Commission's list of Chinese companies that might be delisted. The SEC said Alibaba can submit evidence to support its removal from the list until August 19. According to the Holding Foreign Companies Accountable Act of 2020, relevant shares are required to submit audit papers for inspection or be delisted within three years. Alibaba had earlier announced that it would apply to switch from a secondary listing to a primary listing in Hong Kong. Alibaba's share price may fall to around HKD85, according to Kenny Ng Lai-yin, a securities strategist at Everbright Securities International. Other companies added to the list included Mogujie, Boqii, and Cheetah Mobile.