Traders on the NYSE Feb. 28, 2022.
Select Chinese stocks have declined sharply on Thursday.
China watchers believe this is likely because the Securities and Exchange Commission has identified five U.S.-listed American depositary receipts of Chinese companies (Yum China, BeiGene, Zai Lab, ACM Research and HUTCHMED) for failing to adhere to the Holding Foreign Companies Accountable Act (HFCAA).
ADRs are securities that represent shares of non-U.S. companies, and they are traded on U.S. exchanges.
The act, which was passed in 2020, permits the SEC to ban companies from trading and be delisted from U.S. exchanges if American regulators are not able to review company audits for three…