Delisting Fear

Delisting risks lifted for 173 US-listed Chinese companies, including Nio, Xpeng and Li Auto.

This is a key step in resolving a long-running bilateral dispute, a Reuters report said.

US audit inspectors completed the first round of on-site inspections of Chinese companies ahead of schedule, signaling progress in the process of preventing the delisting of shares of US-listed Chinese companies, Bloomberg reported.

US accounting inspectors could arrive in Hong Kong as soon as next month to make sure it has full access to audit papers, paving the way for a final agreement.

The inclusion of Chinese companies on the list is a step by the US side to enforce relevant laws and does not mean they will be delisted, the Foreign Ministry said.

Nio said it will continue to comply with Chinese and US laws and regulations, and strive to maintain its listing status on both the NYSE and the HKEX.

To date, a total of 23 companies have been added to the conclusive list, and another 105 are on the list of companies facing possible delisting.

The Chinese government is discussing with US regulators the logistics of allowing on-site audit inspections of Chinese companies listed in New York, according to Bloomberg.

Li Auto said that inclusion on the list is not equivalent to delisting from the US and that it will not have any impact on the company's actual business operations.

The 17 companies are the fifth to be added to the list, and they have until May 12 to provide evidence to the SEC that they are not eligible for delisting.