menu

Homepage > News > Will Chinese stocks disappear from the US stock markets?

Will Chinese stocks disappear from the US stock markets?


W obliczu nowych regulacji związanych z audytami spółek zagranicznych notowanych na giełdach w USA, Chiny starają się sprowadzić swoje spółki na parkiet w Hongkongu.

LinkDoc Technology Ltd (LDOC.O), a Chinese medical data company, has put off IPO plans on the New York Stock Exchange. The reason was restrictions on the part of Beijing. On Tuesday, the government of the Middle Kingdom announced a tightening of control over Chinese companies listed outside the country, which led to a sell-off of their shares on the US stock markets.

Last week, the Chinese cybersecurity regulatory agency launched an investigation into the shipping giant – the DiDi app. The company, known as the Chinese equivalent of Uber, has 377 million users in China. Nevertheless, the application has been removed from all digital stores available in the country (only existing owners can use it). The reason for its withdrawal was given a potential threat to users’ cybersecurity. Everything happened two days after the company’s debut on the New York Stock Exchange.

Chinese companies listed in the US are in the sights of Beijing

The applications of Full Truck Alliance and Kanzhun (listed in the US) have also disappeared from stores in China. There are leaks that Weibo (the Chinese social media giant) is gearing up to go public in Hong Kong. In the face of these developments, the blocking of the IPO of LinkDoc Technology, a subsidiary of Alibaba Health (0241.HK), does not seem to be surprising. LinkDoc’s IPO was valued at $ 211 million.

So far, 34 Chinese companies have entered the US stock markets this year alone, raising a record $ 12.5 billion through IPOs. Last year it was USD 1.9 billion and has 14 quotations. Mainly Chinese technology companies go to the USA. Beijing may be partially concerned that the United States will obtain the data belonging to these companies, Reuters pointed out.

A law comes into force in the US, which requires that companies listed on stock exchanges in the country undergo an audit on the basis of American rules. This puts Chinese companies in a precarious position and, along with government repression, makes it possible to predict that many of them may move to HKSE.

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.



Ad:

Last news:

Energy crisis in Europe:

Energy crisis in Europe: More companies in the sector go bankrupt

Every day, energy costs hit new records. At the same time, financial burdens in various ...
Read More
eToro with a 66% increase in commission income in the third quarter of 2021

eToro will close the fourth quarter with approximately $290 million in commission income

EToro, which is on track to go public in the United States through its merger ...
Read More
Will China live up to the trade promises made to the US?

Will China live up to the trade promises made to the US?

The signing of a trade agreement between China and the US in January last year ...
Read More
fpmarkets broker adds 550 CFDs per stock

FP Markets is expanding its offer with more assets

The FP Markets broker has expanded its offer with new products available on the MT4 ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *

 

Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top