A total of 179 companies were delisted from U.S. stock exchanges between 2020 and 2021, a report by Finbold says.

In the report released on Tuesday, Finbold revealed that the number of companies listed on Nasdaq and the New York Stock Exchange (NYSE) dropped by 2.89 per cent from 6,179 in 2020 to 6,000 in 2021.

“…a total of 179 companies have been delisted from the major United States exchanges between 2020 and 2021.

“In 2021, the number of companies on Nasdaq and the New York Stock Exchange (NYSE) stands at 6,000, dropping 2.89% from last year’s figure of 6,179. In 2019, the listed companies stood at 5,454,” Finbold in the report said.

While NYSE recorded the highest delisting with companies on the platform, dropping 15.28% year-over-year from 2,873 to 2,434, Nasdaq listed companies grew 7.86% from 3,306 to 3,566.

The report detailed that a significant portion of the delisting sprang from the regulatory perspective that pitted U.S. agencies against their Chinese counterparts.

Finbold explained that other companies were delisted for violating listing regulations and failing to meet the minimum financial standard which includes the company’s inability to maintain a minimum share price, financial ratios, and sales levels.

The report also cited the emergence of new alternative markets as other possible reasons for the delisting from U.S. major exchanges

It explained that China and Hong Kong markets have become more appealing, with regulators making local listings more attractive.

It added that some delisted companies’ voluntary requested to be delisted following their desire to trade on other exchanges.