According to the Economic Daily, another 17 companies, including Li Auto Inc., BEST INC and KE Holdings Inc., were added to the "pre-picked list" by the United States on April 21, local time, and Chinese stocks tumbled that day. In fact, investors need not worry too much about this.
With regard to the inclusion of the list, the head of the relevant departments of the CSRC has publicly explained that this is a normal procedure for US regulators to implement the Foreign Company Accountability Act and is a normal step. However, being on the list does not mean delisting. Whether the listed companies will really delist in the next two years or not will ultimately depend on the progress and results of Sino-US audit regulatory cooperation.
At present, the Chinese side and the Accounting Supervisory Board of American Public companies are holding several rounds of talks, which are progressing smoothly. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the sub-forum on the opening up of China's Capital Market at the 2022 annual meeting of the Boao Forum for Asia that China will continue to expand its opening up to the outside world at a high level. It is believed that the uncertainty of Chinese stocks will be eliminated and a cooperation agreement will be reached soon.