Within the last few days, billions in market value have been collectively lost by China’s dual-listed tech giants — Alibaba, Baidu, JD.com, and Netease. These losses came after new threats of the companies being delisted from United States stock exchanges emerged a few days ago.
According to reports whose calculations were based on data from Refinitiv Eikon, in just three days a total of 468.64 billion Hong Kong dollars (about $60.31 billion) was almost in market capitalization of the four Chinese dual-listed tech stocks as of Friday’s close in Hong Kong.
The following list shows the amount of market capitalization lost by each of the companies in the last few days - Between Tuesday’s close and Friday’s close in Hong Kong:
A loss of 303.1 billion Hong Kong dollars ($39 billion) for Alibaba
A loss of 107.54 billion Hong Kong dollars for Baidu
A loss of 30.674 billion Hong Kong dollars for JD.com
A loss of 27.334 billion Hong Kong dollars for Netease
Notable looser in this spree was the China’s largest search engine firm Baidu whose debut in its Hong Kong secondary listing on Tuesday was not as good as expected and the shares of the company ended flat on the first day of trading.
A law that would result in delisting of foreign companies from United States stock exchanges if the companies failed to comply with American auditing standards was adopted by the US Securities and Exchange Commission (SEC) on Wednesday. This new law that is known as the Holding Foreign Companies Accountable Act was passed enacted into law under the administration of the former US President Donald Trump.
Auditing by a US watchdog of the companies would have to be conducted under the new law and those identified by the SEC. The companies would also need to show that they are not owned or controlled by a government entity in a foreign jurisdiction. Declaration of any board member of a foreign company who are Chinese Communist Party officials would also have to made by the US listed Chinese companies, the SEC said in a statement on Wednesday.
Over and above the uncertainties they face in the US, Chinese tech companies are also facing challenges domestically with the country’s regulators tightening its grip on the fast-expanding sector while also strictly imposing anti-monopoly laws in financial technology and e-commerce industries.
At the end of last year, a dual initial public offering of Ant Group, which was touted to the largest for the year, was scuttled just days before its launch. The billionaire founder of Alibaba Jack Ma is the controller of Ant Group.
(Source:www.cnbc.com)
According to reports whose calculations were based on data from Refinitiv Eikon, in just three days a total of 468.64 billion Hong Kong dollars (about $60.31 billion) was almost in market capitalization of the four Chinese dual-listed tech stocks as of Friday’s close in Hong Kong.
The following list shows the amount of market capitalization lost by each of the companies in the last few days - Between Tuesday’s close and Friday’s close in Hong Kong:
A loss of 303.1 billion Hong Kong dollars ($39 billion) for Alibaba
A loss of 107.54 billion Hong Kong dollars for Baidu
A loss of 30.674 billion Hong Kong dollars for JD.com
A loss of 27.334 billion Hong Kong dollars for Netease
Notable looser in this spree was the China’s largest search engine firm Baidu whose debut in its Hong Kong secondary listing on Tuesday was not as good as expected and the shares of the company ended flat on the first day of trading.
A law that would result in delisting of foreign companies from United States stock exchanges if the companies failed to comply with American auditing standards was adopted by the US Securities and Exchange Commission (SEC) on Wednesday. This new law that is known as the Holding Foreign Companies Accountable Act was passed enacted into law under the administration of the former US President Donald Trump.
Auditing by a US watchdog of the companies would have to be conducted under the new law and those identified by the SEC. The companies would also need to show that they are not owned or controlled by a government entity in a foreign jurisdiction. Declaration of any board member of a foreign company who are Chinese Communist Party officials would also have to made by the US listed Chinese companies, the SEC said in a statement on Wednesday.
Over and above the uncertainties they face in the US, Chinese tech companies are also facing challenges domestically with the country’s regulators tightening its grip on the fast-expanding sector while also strictly imposing anti-monopoly laws in financial technology and e-commerce industries.
At the end of last year, a dual initial public offering of Ant Group, which was touted to the largest for the year, was scuttled just days before its launch. The billionaire founder of Alibaba Jack Ma is the controller of Ant Group.
(Source:www.cnbc.com)
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