Li Auto: HFCAA listing poses no effect on operations

Beijing (Gasgoo)- On April 21st, several US-listed foreign companies were added to the Holding Foreign Companies Accountable Act list (HFCAA) by the SEC, including the up-rising new energy vehicle startup, Li Auto. 

Photo credit: Li Auto

The companies have until May 12th to submit evidence disputing the action to the SEC. 

Li Auto issued a response, stating that the HFCAA list is something all US-listed Chinese companies will endure every year after releasing their annual reports. Being included in the list does not mean delisting. In fact, according to local regulations, the HFCAA stated that a company would be delisted from a US stock exchange if the said company failed to provide audit working papers to the Public Company Accounting Oversight Board for three consecutive years. 

Li Auto further explained that as a responsible enterprise that values its investors, the company had been actively looking for a solution. 

On one hand, Li Auto has successfully launched its dual primary listing on Hong Kong Stock Exchange (HKEX), allowing interchangeable share trading between the US and Hong Kong. By doing so, Li Auto’s US investors can easily switch to HKEX at any time. In addition, as a primary listing, Li Auto’s position is not subjective to the regulations of US exchanges. 

On the other hand, Li Auto has been actively cooperating with domestic and foreign authorities in audit works. Being listed in the HFCAA will not affect its actual business operations.