Home » The reasons why the United States included Weibo, Baidu, etc. on the pre-delisting list of scholars | China Concept Stock | Delisting

The reasons why the United States included Weibo, Baidu, etc. on the pre-delisting list of scholars | China Concept Stock | Delisting

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The reasons why the United States included Weibo, Baidu, etc. on the pre-delisting list of scholars | China Concept Stock | Delisting

[Epoch Times, April 1, 2022](The Epoch Times reporters Chang Chun and Liu Yi interviewed and reported) The U.S. Securities and Exchange Commission (SEC) included Baidu, iQiyi and other 5 Chinese concept stocks listed in the United States as “pre-delisting” After the news of the “list” came out, the stock price of Chinese concept stocks fell sharply. Scholars have analyzed the reasons for this.

On March 30, local time in the United States, the SEC included five companies, Baidu, Futu Holdings, iQiyi, Kaixin Yuanda Pharmaceutical and Nocera on the “pre-delisting list”. Included in the “pre-delisting list”.

Affected by this, the stock prices of popular Chinese concept stocks generally fell. According to the Hong Kong Economic Journal on April 1, on Thursday (March 31), Baidu ADR closed down 8.02% to $132.3 per share; iQiyi It fell 9.92% to close at $4.54 per share; Futu fell 12.94% to close at $32.56 per share.

The Nasdaq Golden Dragon China Index, which reflects the performance of Chinese concept stocks, closed down 5.44% at 7,064 points. It fell 21% in the first quarter of this year, the worst performance since 2008.

Expert: The U.S. intends to warn Chinese concept stocks that the SEC is protecting investors

Regarding the SEC’s multiple listing of Chinese concept stocks in the “pre-delisting list”, Xie Tian, ​​a professor at the Aiken School of Business at the University of South Carolina, told The Epoch Times that this is a warning issued by the United States to Chinese companies listed in the United States. A company must provide transparent financial statements disclosing all its equity information. The CCP’s refusal to disclose this financial information has to do with the fact that the CCP elites hold shares in these listed companies, and the CCP does not want their own wealth information leaked to the American public. The CCP is very afraid of this, and it is trying to block it.

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Huang Jun, an economist based in the United States, also told The Epoch Times that the CCP authorities do not want these companies to disclose information. First, the CCP never trusts others and is very suspicious. In addition, some businesses of these Internet companies are subject to government intervention. Once these non-market operation methods are exposed, they will touch some laws in the United States. Again, some sensitive information may be involved.

Xie Tian believes that the SEC’s approach is to protect investors. It is opaque to American investors if such detailed information is not released, and if it is not transparent, it may hide the suspicion of dereliction of duty and crime. Therefore, the US Securities Regulatory Commission actually makes this request for the reasons of protecting the public and protecting investors.

Weibo became the first Internet company to be included in the “pre-delisting list”

On March 10, the SEC included five Chinese concept stocks of BeiGene, Yum China, Zai Lab, Shengmei Semiconductor and Chi-Med Pharmaceuticals on the “pre-delisting list”. The above Chinese concept stocks can file with the SEC before March 29. Provide evidence that you are not eligible for delisting.

On March 23, Weibo became the first Internet company to be included in the “pre-delisting list”, and must provide evidence that it does not meet the conditions for delisting before April 13.

Huang Jun said that, first of all, the SEC’s actions have a legal basis, not only Weibo, but most of the Chinese companies listed in the United States have not disclosed their information in accordance with the requirements of the “Foreign Company Accountability Act” of the United States.

Secondly, it is related to the recent big translation movement, which is to translate many comments and articles from the mainland into English, French, Japanese, etc. and continue to publish them abroad.

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Many of these translated articles are from Weibo, which generally talks more about political events and is easier to obtain. The Great Translation Movement had a negative impact on Weibo.

Furthermore, it should be related to the Russian-Ukrainian war. The United States warned the CCP not to support Russia in all aspects. This can be understood as a threat to the United States. Moreover, the influence of Weibo is greater than that of the companies that were added to the “pre-delisting list” before. The United States used a relatively influential company to beat Beijing.

In addition, the reason for choosing Weibo is that its market value is relatively large and its influence is relatively large. Relatively speaking, among Weibo users, there are high-level and high-end consumer groups, and they will have a greater influence on some mid-to-high-end people.

Weibo has become a hub for CCP rumors

Sina Weibo, China’s No. 1 social platform, has a huge number of users, from entertainment and sports stars to intellectuals to ordinary users, who can directly access and share various hot events and opinions on Weibo. But post deletions, bans and bans quickly swept the number one social platform in China.

According to a report by the Voice of America on March 30, Mr. Ke, a big V who once had millions of followers on Weibo (his real name was withheld at his request), has been active on Weibo for nearly ten years. The news of the incident was permanently banned. Mr. Ke said that the control of speech on Weibo seems to be loose and tight on the surface, and there is no clear red line, but in general the purpose is to maintain the Communist Party’s regime, and it has intensified in recent years, especially near the 20th National Congress.

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Since 2016, the CCP authorities have used various excuses to rectify Sina Weibo. In February of that year, the person in charge of Sina Weibo was interviewed by the authorities. After that, Sina Weibo was criticized and fined many times in 2017, 2019, 2020, 2021 and other years.

According to reports, after numerous rounds of rectification by the authorities, coupled with internal censorship of Weibo, a large number of Weibo users were forced to leave. Today’s Weibo is flooded with advertisement posts, marketing accounts and official media accounts that control comments. Today’s Weibo has gradually become a place for spreading rumors.

On March 24 this year, the article “Research Confirms that the New Corona Virus Is Made by an American Company” published by “Global Network” was on Weibo’s hot search, and it was read 940 million times in less than a day. This article is full of loopholes, full of various sources of unknown sources, and mistranslated articles are reprinted by major official media and self-media. It made a huge impact in a short period of time. A large number of Weibo users left comments condemning the United States for “thieves shouting to catch thieves”, and they believed in the statement that “the United States made the new crown virus”.

Liu Lipeng used to work as a content reviewer on Weibo. After two years of work, he resigned because he felt unbearable. Now he lives in the United States. Liu Lipeng said that, taking the obvious rumor of “new coronavirus made in the United States” as an example, even if someone posts some rebuttal posts on Weibo, the post will be deleted, and there is no chance to refute the rumor at all.

Responsible editor: Lin Congwen#

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