back to article US authorities threaten Alibaba with NYSE delisting

Chinese tech giant Alibaba is the latest company to run afoul of the US Securities and Exchange Commission, which has threatened delisting from US stock exchanges. Alibaba's addition to the SEC's list of nearly 300 companies - mostly from China - means that US officials were unable to complete an audit of the company's …

  1. Lordrobot

    Political Xenophobia is destrying the US Exchanges

    These regulations are both ex-post facto and rules of attainder. But in the US, that is allowed. Can you imagine this? So essentially politicians can set criteria after companies have already been approved by the SEC for IPOs based on the endless Wild rhetoric of politicians as they weaponize exchanges.

    Does this harm China? NO. They can take the IPO money and run. This if Force Majure. Only the US shareholders lose. In the case of Alibaba, BABA has decided to upgrade its Hong Kong Listing which makes the US shares exchangeable for Hong Kong but also will allow Chinese and Chinese exchanges and Asias to buy BABA stock. That will be a huge increase in shareholders in Hong Kong.

    I hope Alibaba voluntarily delists and goes big in Hong Kong. This was the largest IPO in US history so it's perfect for the land of XENOPHOBIA to lose this one. Foreign investment in the US has gone nil. AND WITH US SANCTIONS on over 40% of the world population Alibaba's market will only be 6.6 billion people.

    These same politicians are the one's trying to UNIONIZE Amazon. Chinese firms will never have unions.

    The US market is not that big. IN terms of trade, the USA is only 12% of China's global trade.

    But how stupid do Muricans have to be for this? The gov claims that video cameras that are used for home security send data to Beijing. They said Huawei network switches are watching nuclear weapon silos in Montana. They said DJI drones were mapping your neighbourhoods and sending the data to China. Bloomberg claimed that tiny rice chips in SuperMacro server boards were sending apple and Amazon data to Beijing. Not a single one of these bullcrap accusations have been shown to have any factual merit whatsoever. No rice chips were ever produced. Apple and Amazon denied the story but Bloomberg republished it anyway. The Pentagon, after DJI was delisted said officially that DJI drones were not any risk to national security. Xiaomi fought their delisting in a US Court and Won. The judge ruled the charges were without merit.

    With all this delisting yack, the products of these companies were never banned, other than Huawei and SMIC and both are doing well in the global markets. Honor the Huawei former phone is available in the US.

    The SEC has a lot of these Xenophic rules now. One rule is a company can't be gov owned. Well, Petrobas is Gov owned. So when are they getting DELISTED? I guess enforcement is just aimed at Asians specifically in China.

    So according to the SEC Alibaba has some allotted time to meet the new accounting regulations to reset the year. It would take three years to delist BUT BUT BUT... the discretion would be given to the US Treasury Dept. So now you have a whole cross-linking of US GOV agencies, making the political rules and judgments over private enterprises. That's politics and China should not care. The only reason politicians do this is to antagonize and create opportunities for insider trading and selling of calls and buying of puts. It is just a game played by the crumbling old empires such as the US, UK and France.

    China should complain but not too much. Instead, they should IPO a lot more Chinese firms knowing those firms can take the IPO money and run.

    For me to explain contract law to a lay person is difficult at best. But in simple terms, if you have a contract to pave your drive by a cement flatwork, then the terms can not be altered later if they are material to the contract. The flatworker cannot raise the price and you cannot force them to do additional work other than that specified. Attempting to alter the terms of a contract without the assent of all parties is breach. But if the Government does this, then it is force majure. Chinese firms can take the money and run. Alibaba was the largest IPO in US history. NO large global firm will ever IPO in the USA again. US capital markets have been destroyed by this insanity. Aramco did not file an IPO in the US for fear of the history of seeing other Muslim entities having assets frozen without due process but simply arbitrary and capricious politicians.

    So those of you that think this is fantastic should look to IRS's relatively new rules. In tax law the code the year of your taxes rules the law. But IRS regulations changed and if you previously owed tax to IRS, the new regulation the prevents you from leaving the country now applies to your old return when the regulation did not exist.

    If this was a law it would be UNCONSTITUTIONAL but it is a regulation made by the Agency and that is perfectly legal says the courts.

    I repeat China is not going away ever. They are storming ahead in many areas and this endless US antagonism, the Nancy Kerrigan Kneecapping annoying foreign policy, is isolating the US from all of Asia. In a race war, Asians will stick together. All of the US sanctions, tariffs, and weaponizing of the US dollar reserve are destroying your economy. The more protectionism you add the more the world stops dealing with you.

    1. Kabukiwookie Silver badge

      Re: Political Xenophobia is destrying the US Exchanges

      The US stifling competition by (of course coincidental) all chinese companies, because they're unable to compete, even though they created the rules in the first place.

      Dump any assets in USD while it still has some value.

      1. abstract

        Re: Political Xenophobia is destrying the US Exchanges

        Which rules are you talking about?

        I remember the police beating the anti-globalization demonstrators in Seattle. I believe today the US establishment wishes it was the demonstrators beating the police...

        The West thought it would be a piece of cake to dominate the world since they thought there was no opposition.

        Now the problem the US have is that China is way too powerful so if they don't do all they can to stop it now...

        The US are already in a defensive position because obviously they can't compete.

        1. Kabukiwookie Silver badge

          Re: Political Xenophobia is destrying the US Exchanges

          Which rules are you talking about?

          The rules created around economic participation on the US market of course.

      2. Anonymous Coward
        Anonymous Coward

        Re: Political Xenophobia is destrying the US Exchanges

        Yes, it's so unfair that the SEC is requiring all companies, foreign & domestic, to follow accounting standards and be auditable. Unlike in China, where most companies have cooked books and are scams. Keep up that trolling on behalf of the CCP!

        1. Kabukiwookie Silver badge

          Re: Political Xenophobia is destrying the US Exchanges

          ENRON, Theranos, Bernie Madoff, Libor rigging by Barclays and several european banks,

          Sure it's only China cooking their books...

          Most 'western' banks in 2008 should have gone tits up if it hadn't been for corporate socialism, because of mismanagement.

          Go thump your chest some more elsewhere.

          1. Anonymous Coward
            Anonymous Coward

            Re Kabukiwookie: Political Xenophobia is destrying the US Exchanges

            And your point other than you like to count oranges as apples? Theranos's books were fine - they simply lied about their machines. If any of those you mentioned had occurred in China, you'd have never heard of them. That's the point - China's objection to following SEC accounting transparency requirements is that it's much harder to do what the CCP loves most - keep bad news as a State secret for "social stability".

            1. Kabukiwookie Silver badge

              Re: Re Kabukiwookie: Political Xenophobia is destrying the US Exchanges

              Sure. Defrauding people for billions by lying about your financial state and defrauding people for billions by lying about your products and their capabilities are two very different tyoes of scam...

              And it's CPC. You look uneducated if you're using CCP to indicate the Communist Party of China.

              It's just as stupid as someone who would refer to the United States of America as ASU.

              Please get a clue

              1. abstract

                Re: Re Kabukiwookie: Political Xenophobia is destrying the US Exchanges

                Yes but the West is the civilization of greed so You lie? You steal? You cheat? => Good son!

                But China is supposed to be communist: this is unexcusable!

            2. Kabukiwookie Silver badge

              Re: Re Kabukiwookie: Political Xenophobia is destrying the US Exchanges

              If any of those you mentioned had occurred in China, you'd have never heard of them.

              If you use your Google skills on 'melanine china scandal', you'll find that China, although there's no doubt that they would have hidden this if possible, actually executes ceiminally negligent C-level management inatead of giving them golden parachutes.

              Also no doubt that they do this to appease the population, but regardless of the reason, they do a LOT more than the US has ever done to rich people scamming others out of their money.

              Though this may have happened before you were born, so that may be the reason for your ignorance.

              1. PRR

                Re: Re Kabukiwookie: Political Xenophobia is destrying the US Exchanges

                > use your Google skills on 'melanine china scandal'

                melaMine china scandal

              2. Anonymous Coward
                Anonymous Coward

                Re: Re Kabukiwookie: Political Xenophobia is destrying the US Exchanges

                > you'll find that China (…) actually executes ceiminally negligent C-level management inatead of giving them golden parachutes.

                I guess there is such as thing as overenthusiasm in trying to promote good corporate governance after all.

    2. amanfromMars 1 Silver badge

      Re: Political Xenophobes are destroying more than just the US Exchanges

      And if the allegations revealed here are accurate and true ....... Sen. Johnson Expects 'Deal' To Conceal Indictment Of Hunter Biden ..... does the systemic US rot go right to the top and beyond, and that is prime indicative of a corrupt failed rogue nation state with incompetent renegade non-state actor leaderships in fraudulent positions of commanding control .....

      That makes them a diabolic liability with them easily able to be charged and convicted of also taking a diabolical liberty ...... and whether just for themselves, or in allied support and/or at the specific behest of A.N.Others, is something else to consider more than worthwhile examining/exploring/revealing in the interests of transparency to aid any decision required for any safe and secure endorsement with future remote anonymous reinforcement .... aka Secret IntelAIgent Services help.

      1. Anonymous Coward
        Anonymous Coward

        Re: Political Xenophobes are destroying more than just the US Exchanges

        Oh yea, ZeroHedge. That's a great news source - not. It's a is a far-right libertarian financial blog and news aggregator.

    3. Falmari Silver badge

      Re: Political Xenophobia is destrying the US Exchanges

      @Lordrobot "These same politicians are the one's trying to UNIONIZE Amazon. Chinese firms will never have unions."

      Chinese firms already have unions. Chinese firms have the unions the CPC tells them to have, that being the CPC's union ACFTU (302 million members).

  2. druck Silver badge
    Megaphone

    Told you so

    I did point this out last week here https://forums.theregister.com/forum/all/2022/07/26/alibaba_dual_primary_listing

    Got the same rant from LordRobot then too.

    1. Youngone Silver badge

      Re: Told you so

      LordRobot almost has the kernel of a good point amongst all the CAPITALISATION.

      I have no idea how he thinks those politicians are going to UNIONIZE Amazon however, or why he needs an apostrophe in there.

      Maybe he's a Frank Zappa fan.

      1. druck Silver badge

        Re: Told you so

        I don't know, is it a rant against CAPITALISM or for CAPITALISATION?

  3. amanfromMars 1 Silver badge

    A Level Playing Field or a Ponzi Wasteland?

    US authorities threaten Alibaba with NYSE delisting ... The 2020 Holding Foreign Companies Accountable Act (HFCAA) gives the SEC the authority to delist companies if it is suspected that financial audits may not be accurate.

    And can the same delisting threat be expected for IBM? Or is that completely different? ..... IBM board probes claims of fudged sales figures that led to big bonuses for execs

    1. Anonymous Coward
      Anonymous Coward

      Re: A Level Playing Field or a Ponzi Wasteland?

      Short answer: YES

    2. Anonymous Coward
      Anonymous Coward

      Re: A Level Playing Field or a Ponzi Wasteland?

      What part of "you are hearing about it" did you not understand?

  4. Winkypop Silver badge
    Devil

    Chinese finance

    It’s all about how the fortune cookie crumbles.

  5. Anonymous Coward
    Anonymous Coward

    ”mostly from China"

    No ulterior motives?

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