Chinese firms listed in the United States lost about $60 billion in three days due to the threat of potential de-listings from American stock exchanges, according to CNBC.
- As of Friday’s close in Hong Kong, the cumulative market capitalization of four dual-listed stocks has fallen 486.64 billion Hong Kong dollars from Tuesday’s close.
- Alibaba lost 303.1 billion Hong Kong dollars; Baidu lost 107.54 billion Hong Kong dollars; JD.com lost 30.674 billion Hong Kong dollars; and Netease lost 27.334 billion Hong Kong dollars.
- The United States Securities and Exchange Commission on Wednesday adopted the Holding Foreign Companies Accountable Act which threatens to remove companies from American exchanges unless they comply with auditing standards.
- The law mandates that firms identified by the SEC are required to be audited by a U.S. watchdog. They will need to prove they are now owned or controlled by a government entity in a foreign jurisdiction.
- Chinese tech firms are also facing domestic challengers as Beijing tightens its grip on the sector and establishes anti-monopoly laws in financial technology and e-commerce.