Washington has long demanded full access to the books of US-listed companies, but Beijing has a national security concern that prohibits foreign inspection of working papers from local accounting firms.
The Holding Foreign Companies Accountable Act (HFCAA) was passed in 2020 by US Congress, which compels the US Securities and Exchange Commission to delist stocks of companies that don't comply.
In December, the SEC identified 273 companies that were at risk under the HFCAA, without naming them.
Five companies, including KFC operator Yum China Holdings and Biotech firm BeiGene, were named as possible candidates for delisting earlier this month. Weibo was added to the list on Wednesday.
Shaswat K Das, a lawyer at King Spalding who previously worked with the Public Company Accounting Oversight Board as its primary negotiator with the Chinese regulators on cross-border audit oversight from 2011 to 2015, said the SEC will gradually move to identify the more systemically significant China based companies listed in the US.
China's securities regulator said earlier this month it had made good progress with US counterparts on securities supervision after US-listed Chinese stocks tumbled as the first Chinese firms were named.
It was too early to tell whether that's going to materialise into anything significant, according to Das.
According to a report on Tuesday, Chinese regulators asked some of the country's US-listed firms, including Alibaba, Baidu and JD.com, to prepare for more audit disclosures.
According to Yum China, the stock exchange may have to delist from the New York stock exchange by the year 2024, after the US authorities said it had failed to provide access to audit documents.