Shares of iQiyi (NASDAQ: IQ) fell today as investors reacted to news that the U.S. Securities and Exchange Commission (SEC) may potentially delist Chinese stocks that don’t adhere to U.S. accounting standards. Investors are also concerned about the increasing regulation of Chinese tech companies by the Chinese government.
The tech stock was down by 13.3% at the end of the trading day.
The SEC issued a statement earlier this week about the Holding Foreign Companies Accountable (HFCA) Act, which was set up under the Trump administration. The HFCA act says that any foreign companies that don’t comply with U.S. auditing standards for three years could be delisted from U.S. stock exchanges.