Li Auto, Luckin Coffee and BeyondSpring headline a SEC watch list for accounting compliance

Apr. 21, 2022 3:33 PM ETLuckin Coffee Inc. (LKNCY)CBAT, CHFHY, ZH, NVFY, LOVA, BYSI, JG, SCGY, SNPY, JRSS, EUBG, CNET, AMTD, BEST, LI, BEKEBy: Clark Schultz, SA News Editor7 Comments

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The SEC added 17 more firms to the Holding Foreign Companies Accountable Act list of companies where the firm has a branch or office that is located in a foreign jurisdiction and an oversight board has determined that it is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.

The HFCAA has stated that a company would be delisted from a U.S. exchange if it was identified by the SEC for three consecutive years because of the Public Company Accounting Oversight Board's inability to audit it properly.

The new additions to the list were Zhihu Inc. (ZH), Nova Lifestyle, Inc., (NVFY), Lovarra (OTCPK:LOVA), BeyondSpring Inc. (BYSI), Luckin Coffee Inc. (OTCPK:LKNCY), Aurora Mobile Limited (JG), Scientific Energy, Inc. (OTCPK:SCGY), China Foods Holdings Limited (OTCPK:CHFHY), Value Exchange International, Inc. (OTC:SNPY), JRSIS Health Care Corporation (OTCQB:JRSS), Entrepreneur Universe Bright Group (OTCPK:EUBG), CBAK Energy Technology, Inc. (CBAT), ZW Data Action Technologies Inc. (CNET), AMTD IDEA Group (AMTD), BEST Inc. (BEST), Li Auto Inc. (LI) and KE Holdings Inc. (BEKE).

Those companies have until May 12 to submit evidence disputing the distinction.

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