Zhongxin Finance, March 31. Baidu issued an announcement on the 31st that it was included in the list of the "Foreign Company Accountability Act" by the U.S. Securities and Exchange Commission (SEC), saying that the company "has been actively seeking possible solutions" and will continue to Ensure compliance with the relevant laws and regulations of China and the United States, and remain listed on the Nasdaq and the Hong Kong Stock Exchange when conditions permit.
Baidu believes that these determinations are administrative measures taken by the SEC under the HFCAA ("Foreign Company Accountability Act"), indicating that the SEC has determined that the company has used auditing documents that cannot currently be reviewed by the Public Company Accounting Oversight Board (PCAOB). The agency issued the 2021 fiscal year audit report.
Baidu said in its announcement that the company was informed that the U.S. Securities and Exchange Commission (SEC) placed Baidu on its designation list under the Foreign Company Accountability Act (HFCAA) on March 30, 2022.
The company believes the designation is due to its filing with the SEC on Form 20-F, its annual report for the fiscal year ended December 31, 2021.
According to HFCAA regulations, a listed company will be delisted in the United States only if the audit institution that has been identified by the SEC for three consecutive years as using an auditing institution that has failed to be reviewed by the PCAOB issues an annual audit report.
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