fredag 11. mars 2022

Chinese tech stocks plunge after US names companies for potential delisting

Popular Chinese tech stocks have plunged after the US regulator named five Chinese companies that could be removed from American stock markets for failing to meet audit requirements. Alibaba (BABA) fell more than 6% Friday in Hong Kong. Its US-listed stock ended down 7.9% on Thursday. (JD) plummeted nearly 17% in Hong Kong, after closing 16% lower on Wall Street. Baidu(BIDU) was down 5%, following a 6.3% drop in the United States.

Other companies with dual listings in the United States and Hong Kong also declined sharply.
The broad losses came after the US Securities and Exchange Commission on Thursday identified five Chinese companies for not adhering to the Holding Foreign Companies Accountability Act (HFCAA). That law gives the SEC power to kick companies off Wall Street if they fail to allow US watchdogs to inspect their financial audits for three straight years.

The broad drop in China's internet and tech stocks, which are usually listed both in New York and Hong Kong, was because of "worries that more companies will be put on the [US] list in the coming months," said Citi analysts in a research report on Friday.