HGC Info Tech (HGC) announced Tuesday that it will start offering its securities tokens at U.S. digital asset exchange INX, as Chinese firms face delisting risks in the states due to regulatory differences.
See related article: SEC places Chinese crypto mining rig maker Canaan on pre-delisting list
Fast facts
- Xiamen-based HGC provides order matching and freight payment services to the logistics industry in the mainland.
- The Chinese logistics network company registered in the British Virgin Islands said it hopes to raise US$20 million through the Trucpal securities tokens starting July 25, according to a press release.
- All publicly traded companies in the U.S. must allow access to audit papers, while China has banned the exporting of audit papers without permission since 2009.
- The Foreign Corporate Accountability Act (HFCAA) stipulates that companies that refuse to give access to audit working papers be flagged by the U.S. Securities and Exchange Commission (SEC), and will be subject to delisting if documents aren’t made available within three years.
- In 2022, 150 Chinese firms have been confirmed to be delisted as of July.
- Both countries have reportedly been in discussions to ease delisting risks due to regulatory differences, with Beijing hoping to finalize an agreement this year.
See related article: Fusang receives green light for US$10M equity-token IPO
