(CNBC) Alibaba stock shed more than 5% on Friday, as most dual-listed Hong Kong shares traded down on fresh fears of delisting from the US exchanges.
EV Maker Nio fell more than 11.64%, while Baidu and NetEase slipped by 5.14% and 6.94%, respectively. JD.com was down by 15.67%.
The delisting fears were sparked by a move by the US Securities and Exchange Commission to name five US-listed Chinese firms, which the regulator said they failed to follow the Holding Foreign Companies Accountable Act.
The five companies mentioned by the SEC have been cited as some of as many as 270 entities that will be delisted if they fail to produce detailed audit documents backing their financial statements.
The firms facing delisting include fast-food Yum China, biotech firms BeiGene, HutchMed, and Zai Lab, as well as tech company ACM Research.
The move by the SEC comes after, in December, the US passed a law that gave the regulator power to intervene in Chinese companies listed in its exchanges to review their financial audits.
The requirement to oversee the audit records of Chinese firms listed in the US has been criticized by Beijing, with the state authorities blocking compliance with the requests.
9988: HKG is down 5.52%, NIO: NYSE closed down -11.90%, 9618: HKG is down 11.04%.
