HQ switch eyed to avoid delisting threat

Macau casino operator Melco International Development's (0200) US-listed subsidiary is said to be considering relocating its headquarters to Macau in a bid to avoid being delisted from the US if the country and China failed to come to terms regarding audit papers access.

The US Securities and Exchange Commission has said some 200 Chinese and Hong Kong firms listed in the nation will lose their listing status in 2024 if Beijing does not allow foreign regulators to access the audit papers of these companies.

Macau is not included in the delisting risk, making it a possible loophole for them seeking to maintain their US listing, though it remains unclear whether China would permit overseas watchdogs to examine audit files of firms based in the gaming hub, according to the Financial Times.

Several companies are mulling this over but none will make the move before winning the nod from the authorities, the newspaper cited a source as saying.

Meanwhile, the US's top auditor watchdog is throwing cold water on a workaround that's been floated as a way to avoid the delisting of the 200 firms.

A company's decision to leave the New York Stock Exchange or Nasdaq voluntarily might not keep the Public Company Accounting Oversight Board from demanding to review its audit work papers, chair Erica Williams said. "If a firm or issuer decides to delist this year, it really doesn't matter to me because I need to know if you engaged in fraud last year," Williams said.