Nio, XPeng Motors join the SEC list of 86 others facing possible SEC delisting

Robert Way/iStock Editorial via Getty Images

• Nio (NYSE:NIO) and XPeng Motors (NYSE:XPEV) have joined the list of Chinese companies after Li Auto (NASDAQ:LI) who are all facing possible delisting, as reported by CnEVPost.
• Nio responded that it will continue to comply with Chinese and US laws and regulations, and strive to maintain its listing status on both the NYSE and the HKEX.
• On Mar.10, Nio completed a secondary listing of its Class A ordinary shares on the Main Board of the Hong Kong Stock Exchange.
• Under the Holding Foreign Companies Accountable Act (HFCAA), the SEC has the authority to delist foreign-listed companies from the exchange if they fail to file reports required by the Public Company Accounting Oversight Board for three consecutive years.
• The SEC list, updated on May 4, indicates that 88 companies, including NIO, XPeng, EHang Holdings (NASDAQ:EH), JD.com (NASDAQ:JD), and Pinduoduo (NASDAQ:PDD), were added to the provisional list of issuers identified.
• The companies have until May 25 to provide evidence to the SEC that they do not qualify for delisting; if unable to do so, they will be placed on a conclusive list who will be required to file the SEC's required documents within three years, and if they fail to do so, they will be delisted in early 2024, following the disclosure of their 2023 annual report.
• Both the Chinese and U.S. regulators are currently working to address the issue.
• The list was first released on Mar.5 and since then is updated five times with Li Auto included on Apr.22; there are another 105 on the provisional list.
• Bilibili (BILI), NetEase (NTSE), JinkoSolar (JKS), China Petroleum & Chemical (SNP) have also been added to the SEC list.
• All the companies - LI, NIO, XPEV, EH, HUYA - are all trading 2.5-4% down in premarket trade.

Comments

[Doctor_ECE_Prof]

As a professor it makes me laugh at the usage of English like in this line:
""The companies have until May 25 to provide evidence to the SEC that they do not qualify for delisting"
QUALIFY is a word used for something positive, like I qualified for the finals. Not for something negative like Delisting!

[Doctor_ECE_Prof]

"The companies have until May 25 to provide evidence to the SEC that they do not qualify for delisting; if unable to do so, they will be placed on a conclusive list who will be required to file the SEC's required documents within three years"

THREE YEARS (FROM MAY 25) GRACE PERIOD FOLKS! Long time before which many things can happen: Dollar weakens; SWIFT debacle forces others to develop alternate methods; Other countries run away trading with us or stop parking their surplus in our banks, treasuries; the fractional banking system explodes; hyperinflation; nuclear confrontation.
NIO can list in HK exchange and we can happily trade ever if we still have our freedom :)
I am more worried about our government response as our economic situation becomes similar to RU and other declining countries (China is not one of them though they tied themselves to us and Europe selling their goods). We now have the Ministry of Truth. Did you guys know since 2008, the big brother is watching our physical gold purchase (IIRC, in 1930 and or 1970's we were asked to surrender all gold and silver coins).

[jzup]

@ECE_Prof I am not old enough to remember those days when US citizen were asked to surrender their gold coins. But I am just curious, was then any social uprise? How could people then accepted any ridiculous demands like that?

[Doctor_ECE_Prof]

@jzup Google is our friend, my friend. It is not just for searching for juicy videos :)

www.google.com/...

[jzup]

@ECE_Prof Yea, i totally agreed that it happened. But i just do not know if it can happen again before society changed. For example, slavery was legal in USA 200 years ago, but I can not image it will be legal again.

[99997]

Does anybody know where to find the official “list” of the 88 securities? I looked on the SEC site and the PCAOB where there is various data, but no list. Thanks

[Euro-Mario]

@99997 here

https://www.sec.gov/hfcaa

[Vanamo]

@Euro-Mario Noooo, they are delisting Lukin Coffee and China Mobile again somehow. I'm confused as to why they are on the list.

Isn't it just a list of companies that need to get a new accountant?

[JP295]

@Vanamo Basically yes, its a list of Chinese Companies that need make some accounting adjustments and to allow the SEC to audit their books upon request. These Companies have 3 years to make these changes. My guess is that the EV Companies will do so in a year or less. The only potential issue will be how China and USA get along (or not). But with China's economy starting to fade, "things" should work out.

[Euro-Mario]

this list is toilet paper

[Illuminati Investments]

Is $KNDI on there? Should be (delisted).

[Niarb Namtih]

That's out SEC looking out for the American investor. Rather, I mean gutting out the American investor. Meanwhile, they're all gung ho on crypto. We're doomed.

[unbob]

@Niarb Namtih Re crypto, "As an object of speculation, bitcoin is unprecedented in the degree to which there is no there there."

www.ft.com/...

[Legacy Legends, LLC]

B U Y

T E S L A

[ZamboniGuy]

@Legacy Legends, LLC
I added more TSLA today after 3:30 @ 864.23, 863.68, & 867.65
Decided to sell half of NIO in order to add more TSLA.
Played it relatively safe but buying shares & now long calls.
Couldn’t resist adding with TSLA down $90/share.
Didn’t like selling any of my NIO at such a low price; but happy swapping for bargain TSLA ahead of the pending split

[ZamboniGuy]

@ZamboniGuy

Played it relatively safe by buying shares & not long calls.

[Chillbizzee]

@ZamboniGuy I have been watching NiO for years but if you want to play in the EV space it really is all about TSLA. And the right entry is sub $900. Well played.

[mwilson801]

Do we have to list them one by one and tank the entire sector every day?
It seems done on purpose.
Wait...

[mwilson801]

@mwilson801 At the same time, is it so hard for the companies to comply?
Is it so hard for the SEC to simply delist non-compliant companies immediately?
What is the point in this stupid years-long game?

[churtado]

@mwilson801 100% done intentionally

[Finance Tiger]

@mwilson801
Exactly. I think, USA does not like chinese companies listed in nasdaq. Usa wants to avoid the situation that american investors will be at the control of Xi. All the companies loose their value and will run back to hk exchange. World has lost its hope on china after the disaster handling of zero covid policy. Still some poor chinese are thinking that ccp is helping them out by locking them inside the apartment without food to escape from covid. When the entire world is working normally and living with virus, chinese are scared. This is called slave mentality. We start to like our master after getting kicked several time. Chinese reduced their expectation to so low like Taliban govt.

[Value Digger]

When it comes to investing in the electric vehicles industry, NIO, XPEV and LI are extremely risky due to the aforementioned possible delisting.

Meanwhile, undiscovered NVE Corp (NVEC) with the 8% dividend announced excellent results while underlining its growing presence in the hybrid electric vehicles in yesterday's conference call:

"We have been making some good headway, particularly in the automotive market, particularly in hybrid electric vehicles. So I mentioned the onboard charging system where we are part of a reference design........"

NVEC's results:

www.globenewswire.com/...

[Geo67]

The elites want these stocks to go down so they can buy more ..the SEC is a racket..they continue to let congress traders benefit on insider information and that doesn’t seem to be an issue

[goodbotic.us]

Are the NIO equities offered via the 2 (us & HK) exchanges the same? If the US trading is suspended, is there a way to convert these US shares over to trade in HK instead?

[mrslow]

@goodbotic.us 9866.HK looks the same as NIO to me, the only one listed via introduction. ADR conversion ratio 1:1. Most major stocks affected by the delisting concerned have practically dual-listed on SEHK

[unbob]

@mrslow One significant difference - currently 9866.HK daily trading avg is ~231k while NIO on NYSE daily avg volume is ~70m. Frankfurt exchange volume is even lower than HK.

So, obviously NYSE is where the action is.

[Traveling-Junkie]

NIO is going global and it needs to stay on the NYSE. This is nothing but scary tactics to bring the price down and allow the big financials to have an entry point.

[engineeringeddie]

I think the takeaway from this exercise is a lot more dire for America in the long term than it is for disruptive companies raising capital. A rational actor would probably just conclude from this recent performance that any internationally domiciled companies should avoid listing on the NYSE or NASDAQ in the first place. Since the SEC is beholden to whatever political action the State Dept. deems favorable in the moment, American capital markets become less and less reliable. That is, I suppose, unless one still imagines that the SEC's purpose is to secure investors' interests, which would be remarkably optimistic in light of its actual performance on investors' behalf.

[unbob]

@Traveling-Junkie Pure greed trying to pull sp down further. It's already low enough to make a killing over the next few years.

[Chris Lau]

This China delisting is a breakup that never happens. Buy dating stocks instead MTCH BMBL.

[DSUND]

Scaring people out of these stocks, bringing prices down, and providing new opportunities for those who have been waiting to get in with lower prices on these stocks ....

[mrbuseco2]

A little pressure to end the zero covid policy?

[TheeSoluution]

A Non issue for NIO in my opinion

[Djreef1966]

Not this redundant merry-go-round again.

[JeffSizemore]

Biden trade wars will only hurt the American consumer

[6824615]

@JeffSizemore

No trade war via Biden. In fact he has eliminated most European, Canadian, and Japan tariffs that the prior administration implemented.

IMO if not for Ukraine, easing tariffs with China would’ve already started. Tariffs have been the single most contributor to inflation and are a huge tax for U.S. consumers.

[qwerty11]

SEC scan: VIE >>>> add to list

[billyb1980]

Why not just say all Chinese Companies are on this list instead of these redundant headlines every week? 🤔 Anyway once on this list you still get 3 years to comply.. how lienent even tho it'll probably get resolved this year as the ccp has already said they will allow on aite audits.

[RickinMiami]

@billyb1980 3yrs started begging of 2021

[FeralHamster]

@billyb1980 3 years started when the law came into effect. This is just a public “warning” of non-compliance. It’s a nothingburger though as all these companies have stated they are non-compliant on every 10Q since the law was passed.