Fol­low­ing BeiGene, Zai Lab changes au­di­tors amidst SEC threat of delist­ing

In a move to com­ply with new US pol­i­cy, Zai Lab an­nounced Thurs­day that it was se­lect­ing KP­MG as its new ac­count­ing firm, drop­ping the mas­sive firm De­loitte as its pre­vi­ous ac­coun­tants.

Zai Lab, along with BeiGene and Hutchmed, were ini­tial­ly named by the SEC last month as po­ten­tial­ly in dan­ger of los­ing their US list­ings af­ter they were found to be in vi­o­la­tion of a rel­a­tive­ly new US law, the Hold­ing For­eign Com­pa­nies Ac­count­able Act (HF­CAA). The law, passed in late 2020, com­pels the SEC to iden­ti­fy pub­lic com­pa­nies with au­dit­ing firms that can­not be re­viewed or in­spect­ed by a non­prof­it over­sight board, the Pub­lic Com­pa­ny Ac­count­ing Over­sight Board (PCAOB).

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