Is Alibaba Stock a Buy Now?
Alibaba's (NYSE: BABA) stock price plunged 11% on July 29 after the U.S. Securities and Exchange Commission (SEC) added the Chinese tech giant to its list of stocks that could be delisted. That threat has being hanging over Alibaba ever since the Holding Foreign Companies Accountable Act (HFCAA), which demands that foreign companies (particularly Chinese ones) open their books to U.S. auditors, became law in December 2020.
Under the HFCAA, Chinese companies that don't comply with those tighter auditing standards for three consecutive years will be delisted from all U.S. exchanges, including over-the-counter (OTC) ones. China's Securities Regulatory Commission (CSRC) subsequently held talks with the SEC to prevent those delistings, but those discussions have been fruitless thus far.
Image source: Alibaba.
Source Fool.com
