Info-Tech

Chinese tech stocks beaten as the U.S. law threatens to delist firms from American Exchange

Guangzhou, China- On Thursday, the majority of the dual-listed Chinese technology shares trading in Hong Kong has been hammered which rose fear among some companies that be de-listed in the U.S.

Notably, Hong Kong shares of U.S.-listed Chinese tech stocks felled sharply. However, Alibaba was also down by almost 4% at 1:04 p.m. as per the Hong Kong time. Baidu has tanked more than 8% and JD.com has failed over 4% and NetEase which became 3% lower. 

There are certain companies identified by the SEC that needs proper auditing by a U.S. watchdog. These companies need by submitting certain documents for establishment. However, they are not owned or controlled by a government entity in a foreign jurisdiction.

Notably, the Chinese companies will be naming each board member who is a Chinese Communist Party officials said by SEC.

Currently, the U.S. regulator may stop trading the securities without all of its regulations.

However, Chinese technology companies are not under pressure from delisting threats abroad. Moreover, the concerns are over stricter regulation at home. Now, Beijing has looked to reign in the power of technology giants and establishes new rules in those areas starting from financial technology to e-commerce.

The Chinese government’s crackdown begins with billionaire Jack Ma’s empire. This involves the suspension of the mega initial public offering of Ant Group. Moreover, there are signs which Beijing’s aim may extend beyond Ant.

This week, Reuters mentioned that Tencent founder Pony Ma met with the Chinese antitrust officials. Notably, Tencent is only listed in Hong Kong and its shares are almost 2% lesser almost around 1:17 p.m. (Hong Kong time)

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