Home Business Chinese concept stocks plummeted by more than 9%, total market value evaporated by more than 100 billion U.S. dollars | Didi Travel | Tencent | Suning

Chinese concept stocks plummeted by more than 9%, total market value evaporated by more than 100 billion U.S. dollars | Didi Travel | Tencent | Suning

by admin

[Epoch Times December 05, 2021](Epoch Times reporter Li Jing comprehensive report) After the US’s “Foreign Company Accountability Act” (HFCAA) was officially implemented, Chinese concept stocks listed in the US plummeted on Friday (3rd). The total market value lost US$108.3 billion overnight. Didi Chuxing, which is about to delist from the US stock market, fell 22%.

The U.S. Securities and Exchange Commission (SEC) announced on Thursday (December 2) that it passed an amendment to regulations requiring Chinese companies listed in the U.S. to disclose more information. Affected by this, the Chinese concept stocks listed in the United States plummeted on Friday. The Nasdaq Golden Dragon China Index, which measures the overall performance of Chinese concept stocks, closed down 9.12%.

Among the popular Chinese concept stocks, Alibaba and Pinduoduo have fallen by more than 8%, JD.com, Baidu, and Bilibili have fallen by more than 7%, Weilai has fallen by more than 11%, Xiaopeng Motor has fallen by more than 9%, Ideal Auto and Aiqi Yiyi fell more than 15%, Ctrip fell more than 12%, Wuxin Technology fell more than 16%, and Dingdong Maicai fell more than 18%.

According to the statistics of China Times on Saturday (4th), the latest total market value of 274 Chinese concept stocks was US$1.335 billion, which plummeted on Friday and lost US$108.3 billion (approximately RMB 690.5 billion) overnight. Among them, Alibaba’s latest market value is approximately US$303.5 billion, and it lost US$27.2 billion (approximately RMB 173.4 billion) overnight.

SEC requires Chinese concept stocks to comply with U.S. rules

It is worth noting that the share price of Didi Chuxing plummeted 22% at the close, and its market value shrank to approximately US$4.8 billion. Compared with the issue price of $14, Didi Chuxing’s share price has fallen by 56%.

The market generally believes that a major cause of the “availability” of Chinese concept stocks is the “Foreign Company Accountability Act” introduced by the United States.

On December 2, the U.S. Securities and Exchange Commission (SEC) finalized the final plan to implement a new law. The SEC said in a statement that the committee passed an amendment to finalize the implementation of the rules submitted in the Foreign Company Accountability Act (HFCAA), which aims to ensure that foreign companies listed in the United States, especially Chinese companies, comply with U.S. rules.

The SEC stated that Chinese companies listed on the U.S. stock exchange must disclose whether they are owned or controlled by a government entity and provide evidence of their audit inspections.

Unlike many countries, the CCP does not allow the SEC’s accounting agency, the Public Company Accounting Oversight Board (PCAOB) to supervise its audits.

Didi Chuxing announced on Friday that it would “immediately” initiate the process of delisting from the New York Stock Exchange and transferring to Hong Kong, arousing global attention. According to foreign media analysis, the delisting of Didi Chuxing may mean the end of the era of large Chinese companies’ financing in the United States.

On December 3, the spokesperson of the Chinese Communist Party’s Ministry of Foreign Affairs, Zhao Li, insisted that the US’s approach was to “political suppression” of Chinese companies and to “contain China‘s development.”

However, Didi Chuxing has been facing tremendous regulatory pressure from the authorities since its listing in the United States.

The CCP requires that Chinese companies “must obey the party’s laws”

According to separate reports from Bloomberg and Reuters, China‘s regulators demanded that Didi Chuxing be delisted from U.S. exchanges due to concerns about sensitive data leakage.

Didi Chuxing, with 580 million users, successfully landed on the New York Stock Exchange on June 30 this year, and was immediately severely suppressed by the Chinese Communist authorities. Only 10 days after listing, the market value of Didi Chuxing evaporated by more than 20 billion U.S. dollars.

In addition to Didi Chuxing, the CCP authorities filed investigations into a number of concentrated cases on the grounds of the Anti-Monopoly Law, involving Internet companies such as Tencent, Suning, Meituan, and Alibaba.

New York current affairs commentator Zhu Ming once said that in anticipation of the United States requiring Chinese companies to meet the established requirements of other companies and comply with the regulations of U.S. listed companies, the Chinese Communist Party authorities have become more domineering and require Chinese companies to comply with the party’s laws, even if they are listed overseas. , And must pay a heavy price for disobedience.

Editor in charge: Sun Yun#


0 comment

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy