Chinese live streaming platform Huya Inc. recently provided an update on its status under the Holding Foreign Companies Accountable Act (HFCAA). The HFCAA is a 2020 law that requires companies publicly listed on stock exchanges in the US to declare they are not owned or controlled by Chinese government. Any company not in compliance will be delisted from all American stock exchanges.
“Huya understands the SEC made such identification pursuant to the HFCAA and its implementation rules issued thereunder, and this indicates that the SEC determines that the company used an auditor whose working paper cannot be inspected or investigated completely by the Public Company Accounting Oversight Board (the “PCAOB”), to issue the audit opinion for its financial statements for the fiscal year ended December 31, 2021,” reads the statement from Huya. “In accordance with the HFCAA, a company will be delisted from a U.S. stock exchange only if the company has been identified by the SEC for three consecutive years due to the PCAOB’s inability to inspect auditor’s working paper.”
In the meantime, Huya has been looking at all possible solutions. The company has said that it will continue to comply with all applicable laws and regulations in both China and the US so that it can maintain its listing on the New York Stock Exchange.
(All information was provided by Cision PR Newswire and Congress.gov)
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