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Financial Decoupling: China Biotechs Brace For Potential US Delistings, Softening Economy

 
• By Brian Yang

US-listed Chinese biotechs face a potential double-whammy from US rules requiring accounting transparency at the risk of delisting, while other challenges loom from a general regulatory crackdown and economic softening in China, along with rising COVID-19 cases.

US & China
CHINA BIOTECHS FACE LOOMING US DELISING IN LATEST FINANCE DE-DECOUPLING • Source: Alamy

On 10 March, the US Securities and Exchange Commission (SEC) issued a ruling giving US-listed Chinese companies, including pharma firms BeiGene, Ltd., HUTCHMED (China) Limited and Zai Lab Ltd., three years to switch to accounting firms that can be investigated by Washington regulators, or two years if a pending amendment to the rule is adopted. 

The move forms part of a requirement following the passing of a 2020 US law, the Holding Foreign Companies Accountable...

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