• Welcome to forex.pm forex forum binary options trade. Please login or sign up.
 

Chinese Tech Shares Dip as US Names Firms for Delisting

Started by PocketOption, Mar 11, 2022, 01:00 pm

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.

PocketOption

Chinese Tech Shares Dip as US Names Firms for Delisting

Bourse de Pékin China 50 record mercredi 3 mars 2021 Industrial Bank

Chinese Tech Shares Dip as U.S. Names Firms for Delisting


The U.S. regulator named five Chinese companies that could be removed from the U.S. stock markets due to non-compliance with audit requirements. Hence, Popular Chinese tech stocks dropped. In Hong Kong, Alibaba fell more than 6% on Friday. Shares in the U.S. decreased by 7.9% on Thursday. JD.com is down almost 17% in Hong Kong. After closing 16% down Wall Street. Baidu dropped 5% in the U.S. after a 6.3% loss. It is worth noting that other companies with double-listed companies in Hong Kong and the U.S. dip sharply.


Broad losses were recorded after Thursday; the U.S. SEC identified five Chinese firms. They did not comply with the Holding Act of Foreign Holding Companies. This law gives the SEC the power to expel companies from Wall Street unless they give U.S. observers the right to review their financial audits within three years.


The sharp drop in Chinese internet and technology stocks sparked concerns that more companies might hit the list in recent months. HFCAA, legalized in December 2020. This prevents companies that refuse to open their books from U.S. accounting regulators from trading on U.S. stock exchanges.


The law applies to any foreign company, though the focus on China is evident. Beijing in the past has often opposed such inspections. The names quoted by the SEC on Thursday are Yum China Holdings, ACM Research, BeiGene, Zai Lab, and Hutchmed. They are the first among about 270 Chinese firms to be listed on the New York Stock Exchange or the Nasdaq; Due to non-compliance with the rules.


Chinese Stocks and Firms


China Securities Regulatory Commission reacted to the U.S. action. It said it was confident it would reach an agreement with its U.S. counterparts on securities supervision. According to the statement, negotiations between the CSRC, the Ministry of Finance of China, and the Accounting Supervisory Board of U.S. public companies have made positive progress. The SEC move prompted China to sell shares in the U.S. on Thursday. The Nasdaq Golden Dragon China Index, a popular index, fell 10% on Thursday. This is the worst daily drop since the fall of 2008.


Yum China, which owns KFC and Taco Bell in China, dropped 11%. ACM Research was down 22%. Zai Lab, Hutchmed, and BeiGene fell 9%, 6.5%, and 6%, respectively. Yum, China lost 12% in Hong Kong on Friday. BeiGene dip 8.3%.


The Hang Seng Index lost more than 3% on Friday. This is mainly due to investor concerns over the protracted war in e following the suspension of peace talks between e and . The Nikkei 225 fell 2.5%. Shanghai Composite was down 1.7%. Kospi lost 1%. U.S. stock futures also decreased. Dow futures lost 0.4%. S&P 500 and Nasdaq futures were down 0.5% and 0.7% respectively.

The post Chinese Tech Shares Dip as US Names Firms for Delisting appeared first on FinanceBrokerage.


Source: Chinese Tech Shares Dip as US Names Firms for Delisting