New York Stock Exchange to delist Chinese property company for failing to report financial results
The New York Stock Exchange has announced that it is planning to delist the Chinese online home platform Danke for failing to report its financial results and for not responding to repeated requests made by the American authorities.ANI | New York | Updated: 08-04-2021 21:13 IST | Created: 08-04-2021 21:13 IST
The New York Stock Exchange has announced that it is planning to delist the Chinese online home platform Danke for failing to report its financial results and for not responding to repeated requests made by the American authorities. The property company, formally known as Phoenix Tree Holdings, has not reported its financial results since the first quarter of 2020 when it posted a net loss of USD 188 million, the South China Morning Post reported. Danke was founded in 2015 has reported full-year losses in the previous three years.
"The company has not provided information requested by NYSE Regulation in February and March 2021," the NYSE said in an April 6 statement. "Separately, it has also come to the attention of NYSE Regulation that the company has failed to make timely, adequate, and accurate disclosures of information to its shareholders and the investing public."
The statement said that shares of the Danke, which traded in New York under the Phoenix Tree name using the mnemonic DNK, had been suspended since March 15 pending the delisting. This comes after the SEC, which regulates the US stock markets, amended the Holding Foreign Companies Accountable Act to remove from the US stock markets foreign firms that did not comply with local accounting standards.
"The SEC has adopted interim final amendments to implement congressionally mandated submission and disclosure requirements of the Holding Foreign Companies Accountable Act (HFCA Act)," the SEC had said. The amended rule comes as US-China relations have reached a new low over several disputes on issues concerning human rights and trade, among others.
The SEC had said that it was "seeking public comment on these submission and disclosure requirements" within 90 days of the date of the enactment of the changes. The HFCA Act allows the SEC to kick foreign companies off US stock exchanges if they did not comply with the country's auditing standards. The law would also require alien firms to disclose any governmental affiliations.
Signed into law in December last year, the HFCA Act was primarily aimed at removing Chinese companies from US exchanges if they failed to comply with US auditing standards, Sputnik reported. The law also requires firms to prove to the SEC that they are not owned or controlled by an entity of a foreign government, and to name any board members with such links. (ANI)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)