China’s dual-listed technology giants Alibaba, Baidu and JD.com have lost billions of market value in a few days.
The losses come amid a possible threat to cancel the listing on US stock exchanges.
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As of Friday’s close in Hong Kong, the market value of the four technology stocks listed on the dual-exchange exchange fell by 468.64 billion Hong Kong dollars, about 60.31 billion dollars in three days, according to CNBC calculations for data accessed through Refinitiv Eikon. .
The following is a list showing how much each of the listed companies also lose in the United States in terms of market value:
Alibaba: lost 303.1 billion Hong Kong dollars (39 billion dollars).
Baidu: lost 107.54 billion Hong Kong dollars (13.75 billion dollars).
JD.com: lost 30.674 billion Hong Kong dollars (3.95 billion dollars).
Netease: lost 27.334 billion Hong Kong dollars (3.52 billion dollars).
On Wednesday, the US Securities and Exchange Commission adopted a law threatening to expel companies from US stock exchanges unless they adhere to auditing standards in the United States, known as the “Foreign Companies Accountability Act”. The law was passed by the administration of former President Donald Trump.
Companies designated by the Securities and Exchange Commission will require an audit by a US regulator and need to demonstrate that they are not owned or controlled by a government entity in a foreign jurisdiction.
The SEC said in a statement on Wednesday that companies will also have to name any of the board members who are Communist Party of China officials.
In addition to these regulatory uncertainties, Chinese technology companies also face potential challenges domestically as Beijing tightens its grip on the rapidly expanding sector and institutes antitrust laws in financial technology and e-commerce.
Reuters reported earlier this week that the founder of Chinese technology company Tencent met with Chinese antitrust officials this month to discuss compliance in his group.
And in a high-profile crackdown last year, the “Ant Group” IPO (which was billed as the largest in the world) was suddenly suspended a few days before its debut, billionaire Jack Ma, founder of Alibaba, who is in control of the said group.
Source: CNBC
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