Baidu, iQIYI Explore Options After US SEC Added Them To Provisional List Pending Audit Review

  • Baidu Inc BIDU explored options after the U.S. SEC added the Chinese search engine giant to a list of companies that faced delisting concerns, Reuters reports.
  • Beijing refused to permit U.S. officials to review their auditors' work, Bloomberg reports.
  • A 2020 U.S. law mandated a three-year clock for firms to comply with inspection requirements that cover every U.S. public company.
  • Also Read: China Asks US-Listed Companies To Prepare For Audit Inspections: Will That Ease Delisting Fears For BABA And Others?
  • The SEC also added Futu Holdings Ltd FUTUNocera Inc NCRA, iQIYI Inc IQ, and CASI Pharmaceuticals Inc CASI to its provisional list for possible delisting.
  • Baidu and its streaming affiliate iQIYI admitted continued compliance with applicable laws and regulations in China and the U.S.
  • Reuters reports that China's securities regulator acknowledged that both China and the U.S. looked to solve their audit disputes.
  • The outcome depended on the progress and results of the audit and regulatory cooperation between the two countries.
  • Price Action: BIDU shares traded lower by 3.29% at $139.10 in the premarket on the last check Thursday.
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