SEC Declares That There Are Currently No Issuers at Risk of Delisting Due to the Holding Foreign Companies Accountable Act
Zai Lab’s Nasdaq Listing Continues Without Interruption
January 20, 2023 – Zai Lab can confirm its previously communicated belief that there is currently no risk that our Nasdaq listing will be disrupted due to the Holding Foreign Companies Accountable Act (“HFCAA”). On December 15, 2022, the Public Company Accounting Oversight Board (“PCAOB”) vacated its previous determinations that it is unable to inspect and investigate completely PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong. Consequently, the U.S. Securities and Exchange Commission (“SEC”) concluded that “until such time as the PCAOB issues any new determination, there are no issuers at risk of having their securities subject to a trading prohibition under the HFCAA.” (See SEC’s HFCAA website statement, https://www.sec.gov/hfcaa, last modified on January 9, 2023).
While Zai Lab is and will continue to be audited by KPMG LLP, a U.S. auditor, it also welcomes the SEC’s recent conclusion that no issuers, including Zai Lab, are currently at risk of having their securities subject to a trading prohibition under the HFCAA.