TAL Education Group (NYSE:TAL) and Mercury Fintech (NASDAQ:MFH) were added to a list of companies that face possible delisting from U.S. exchanges, the Securities and Exchange Commission said on Friday.
The two companies were added to the Holding Foreign Companies Accountable Act, or HFCAA, on June 24, the SEC said, according to its website.
The HFCAA was passed in September 2020 and requires the SEC to identify companies that the Public Company Accounting Oversight Board has had issues with regarding their audits.
A number of other Chinese companies have been added to the list in recent months, including Baidu (BIDU), Weibo (WB), biotech company Beigene (BGNE), Yum China (YUMC), Zai Lab (ZLAB), ACM Research (ACMR) and HUTCHMED (China) Ltd. (HCM), among others.
Chinese government officials recently told U.S.-listed Chinese tech firms, including Baidu (BIDU), to prepare for more audit disclosure from U.S. regulators.
Earlier this month, it was reported that Baidu (BIDU) was in talks to sell its controlling stake in Chinese video streaming services firm iQIYI (IQ).