Sell off on Chinese Big Tech stocks listed on Wall Street after the collapse of the Hong Kong stock exchange. Today the Hang Seng index capitulated by about 5%, paying both the news of the increase in new infections from Covid-19 in mainland China, at the highest rate since the Wuhan lockdown, and the fear that several listed Big Tech on Wall Street are forced to delist.
Watch out for the Nasdaq Golden Dragon China Index, an index that monitors the stocks of Chinese companies traded on Wall Street, which plummeted to -10% at the start of the session, falling to its lowest level since 2013.
The Hong Kong Stock Exchange Hang Seng fell 4.97% to be exact today, at 19,531.66. Heavy sales that hit Tencent (-9.79%), Alibaba (-10.9%) and Meituan -16.84%.
The Hang Seng Tech index fell 11.03% to 3,778.60.
The cold shower came last Friday, when the Securities and Exchange Commission, the controlling authority of the US stock exchange, named five companies that are part of a list of 270 Chinese companies listed on the NYSE and Nasdaq that risk delisting.
The delisting will occur unless the relevant companies allow US authorities to view detailed audit documents that endorse their financial reports.
The five Chinese companies are BeiGene, Zai Lab, ACM Research, Yum China, HutchMed.
The fear that well-known names than corporate China are also at risk of delisting puts ADRs at JD.com and Alibaba under pressure, which also sink by more than 7% in New York.