(Yicai Global) March 14 -- Shares of US-listed Chinese firms, including Didi Global and Alibaba Group Holding, slumped as investors worry the US Securities and Exchange Commission will widen its scope after revealing a list of the first five firms that need to provide audit documents to avoid delisting.

Ride-hailing giant Didi Global [NYSE: DIDI] plunged 44.1 percent to USD1.89 on March 11. The decline means that the about 20 percent stake that Softbank has in Didi has fallen to less than USD2 billion in value from nearly USD14 billion pre-initial public offering. The Beijing-based firm said in December it intends to delist from the New York Stock Exchange and list its shares in Hong Kong.

The US Securities and Exchange Commission finalized a provisional list on March 8, requiring Yum China, biotech firms BeiGene and Zai Lab, chip-manufacturing gear maker ACM Research, and drugmaker HutchMed China to submit evidence by March 29 as to why they should not be delisted under the HFCAA.

The HFCAA, which took effect in December 2020, empowers the SEC to remove companies that have not allowed the Public Company Accounting Oversight Board to review their detailed financial audits for three years since 2021.

Didi had company on its way down. The same day, Alibaba's stock price tumbled nearly 7 percent and that of rivaling e-commerce firm JD.Com dived almost 9 percent.

The rout spread to other sectors, including electric vehicle manufacturing. Li Auto plunged nearly 15 percent while Xpeng Motors dropped more than 12 percent. Shanghai-based Nio fell almost 10 percent.

Other companies with major slumps included healthcare technology firm Zhongchao, vaping company Rlx Technology, and smart home firm Tuya, whose stock prices declined as much as 38 percent. The list continues with freight platform Full Truck Alliance, data center operator Global Data Solutions, financial services firm Lufax Holding, and recruitment platform Boss Zhipin whose shares slid up to 26 percent.

US-listed Chinese firms are eyeing Hong Kong and China's mainland for listings. One of them is Nasdaq-listed biotech firm I-Mab Biopharma which is looking into a dual listing on the Hong Kong main board and the Shanghai Stock Exchange's Star Market.

Editor: Emmi Laine, Xiao Yi