Alibaba Anticipates It Can Comply With U.S. Securities Rules

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Alibaba Group Holding Ltd. Chief Financial Officer Maggie Wu said the company is closely monitoring a U.S. bill that aims to delist foreign companies from the country’s stock exchanges and anticipates that it will be able to comply with any new regulations.

Wu said the company “will endeavor to comply with any legislation whose aim is to protect and bring transparency to investors who buy securities on U.S. stock exchanges.”

The legislation, which was approved by the Senate Wednesday and is targeted at Chinese listings, would require companies to certify that they aren’t under the control of a foreign government. The new rules could mandate that Chinese companies hand over the original auditing documents, which could create some challenges because Chinese law restricts their distribution.

In a conference call to discuss the company’s quarterly financial results, Wu said Alibaba has long worked within U.S. accounting rules and is audited by the Hong Kong arm of accounting firm PricewaterhouseCoopers LLP.

She also pointed out that U.S. investors who bought Alibaba stock during the company’s 2014 initial public offering would have benefited handsomely. Alibaba’s shares are up 197% since then, compared with a 2% increase in the New York Stock Exchange Composite Index.

The proposed law, which has bipartisan support and will next be reviewed by the House, comes as tensions escalate between American and Chinese officials. Alibaba Chief Executive Officer Daniel Zhang said Friday the rising political tensions have added another layer of uncertainty in the post-pandemic world.

Alibaba has been plagued by years of Securities and Exchange Commission investigations and questioning from analysts about its financial structure and accounting practices since its U.S. IPO.

Inquiries have focused on the consolidation of Alibaba’s businesses and related-party transactions including Ant Financial and its Cainiao Network logistics arm. The company has also been probed on how it calculates “gross merchandise volume,” a key metric to determine its e-commerce growth rate, and how it reports data from its Singles’ Day promotion.

Alibaba on Friday reported its slowest pace of revenue growth on record, reflecting the impact of China’s economic contraction across its online marketplaces.

Read more: Alibaba Sales Growth Plumbs New Low During China’s Slowdown

The Chinese e-commerce leader forecast growth in revenue this year of least 27.5% to more than 650 billion yuan ($91 billion), compared with the 657 billion yuan average analysts were projecting. Sales rose 22% to 114.3 billion yuan in the March quarter. Net income was 3.2 billion yuan, down from a year ago when it booked an 18.7 billion yuan one-time gain on investments.

This article was originally published on finance.yahoo.com.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Sabre Corporation Technology

Located in Phoenix, Arizona, Sabre Corporation was originally founded in 1977 by the Air Force's Special Projects Office as a catalyst to provide tactical...

The ‘Hot Couple’ of Instagram share what they learned

His wherein male land form. Own whose they're gathered is let male kind from. A you'll life waters evening fly female won't...

Side Effects of Mesothelioma

Every year in the US, approximately 40,000 people are diagnosed with mesothelioma. While a number of people who are diagnosed with this cancer have...

These funds were made to protect against market downsides. So how’d they do in March?

In recent years, investors have flooded into exchange-traded funds offering creative ways to guard against risk. With the market carnage of March and early April hopefully...

How to Create a Casual Business Atmosphere

One of the most important aspects of business for many businesses is how to create a casual, business feel. How to create a business-casual...
Home of Science
Follow me