Melco Stock Slides on Addition to Potential Delistment List

Shares of Melco Resorts & Entertainment (NASDAQ:MLCO) slipped 2.24% Tuesday.That’s after the stock was added to a group of Chinese equities trading in New York that could be booted from US exchanges.

Earlier today, the Securities and Exchange Commission (SEC) added a dozen firms to the list of Chinese companies trading in the US that could be in violation of the Holding Foreign Companies Accountable Act (HFCAA).

Under guidelines set forth by the HFCAA, audits of foreign companies trading in the US must be inspected by the US Public Company Accounting Standards Board (PCAOB).

Under the HFCAA, the PCAOB has the responsibility for determining that it is unable to inspect or investigate completely a registered public accounting firm or a branch or office of such a firm because of a position taken by an authority in a foreign jurisdiction,” according to the SEC.

It was revealed last month that the PCAOB believes it cannot inspect Melco’s audits because Ernst & Young conducts those examinations in Hong Kong, where the casino operator is based.

Source: https://www.casino.org/news/melco-could-face-us-delisting-if-hfcaa-compliance-isnt-reached/