On March 9, 2022, the U.S. Securities and Exchange Commission (“SEC”) published a notification identifying Zai Lab, among other companies, as in potential violation of the Holding Foreign Companies Accountable Act, which allows the SEC to delist companies and ban a company’s shares from being traded if the company fails to allow U.S. regulators to review their company audits for three straight years. Zai Lab and the other companies named in the SEC notification have until March 29, 2022 to challenge the charges against them.

On this news, Zai Lab’s stock price fell $6.74 per share, or 18%, to close at $30.02 per share on March 10, 2022.