Under the HFCAA, China-based public companies face delisting from U.S. stock exchanges if they do not allow their audits to be inspected by the Public Company Accounting Oversight Board (PCAOB) for three consecutive years, beginning in 2021. The earliest a company could be delisted would be 2024.
According to the official SEC website, the Weibo Corporation needs to provide evidence before April 13 to prove that it does not exhibit conditions to be delisted. Otherwise, it will be included in the “Determined Delisting List.”
On March 8, five Chinese companies including BeiGene, Yum China, Zai Lab Limited, ACM Research (Shanghai) and Hutchmed, were listed in the “pre-delisting list.” They also needed to provide the SEC with evidence before March 29.
The Company's ADSs, each representing one Class A ordinary share, have been quoted on the Nasdaq Global Select Market system under the symbol "WB" since April 17, 2014. The Company's Class A ordinary shares have been listed on the Main Board of the Hong Kong Stock Exchange (the "HKEX") since December 8, 2021 under the stock code "9898." The Company's Class A ordinary shares listed on the HKEX and the Company's ADSs quoted on the Nasdaq are mutually fungible.
“We continue to meet and engage with PRC authorities in an effort to achieve a cooperative agreement that provides the PCAOB with the access required to inspect and investigate completely auditors headquartered in mainland China and Hong Kong,” the PCAOB explained in an emailed statement. “We appreciate the engagement of the Chinese Securities Regulatory Commission and Ministry of Finance to work through several important threshold issues, though it remains unclear whether the PRC government, as a whole, will agree to permit and facilitate the access we require.”