Shares of multiple Chinese companies are trading lower Thursday following reports the U.S. Securities and Exchange Commision has identified multiple US-listed ADRs as having not adhered to the Holding Foreign Companies Accountable act (HFCAA).
ADRs are securities that represent shares of companies outside of the U.S., but trade on U.S. exchanges. HFCAA was passed in 2020 and allows the SEC to ban and delist companies from U.S. exchanges if regulators are unable to review company audits for three consecutive years.
