Over 200 Chinese companies may be kicked off US exchanges

Over


New Delhi, Dec 4 : If the US loses Chinese companies, Wall Street will gradually alienate itself from the world's most prosperous market and the US will no longer be the true global financial centre, Chinese state media claimed. Didi Chuxing, the Chinese ride-hailing giant, announced on Friday that the company is starting the work of delisting from the New York Stock Exchange (NYSE) and initiating preparations for listing in Hong Kong. One day before Didi made the statement, the US Securities and Exchange Commission (SEC) issued a mandate requiring foreign companies listed in the US to provide audits for inspection. Otherwise, they could be delisted from NYSE and Nasdaq in three years. "The new SEC regulation clearly targets Chinese companies listed in the US. Analysts believe that it could lead to more than 200 companies being kicked off US exchanges," Global Times reported. Didi is the first Chinese company, which announced that it would delist from the NYSE after the SEC issued its new regulation. The company got listed in the US in June without the approval of Chinese regulatory authorities, sparking concerns that the information of hundreds of millions of Chinese users would be leaked to endanger China's national security. More than 20 apps linked to the company were subsequently removed from mobile stores. The SEC's new regulation has compressed Didi's space for financing in the US from the other direction, the report said. There have already been voices in the US demanding most of the "China concept stocks" be removed from the US. Scrutiny of "China concept stocks" is expected to get stricter. The US provides various excuses such as "financial security" and "national security" for such scrutiny, the report said. It will become more difficult for Chinese digital technology and application companies to get listed in the US in the future. This will cause losses to both sides. But the tendency shows that China has greater initiative to adjust and adapt to new conditions, the report said. Global Times said Chinese companies have other alternatives, and if they go back to China, they will greatly enhance the attractiveness of the mainland and Hong Kong capital markets, creating the possibility of gradually changing the global financial landscape. /IANS




Related

Sri Lankan tea exports earned $1.3bn in 2021
Colombo, Jan 6 : Sri Lankan tea exports in 2021 earned $1.3 billion despite lower yields and higher costs of production, state media reported on Thurs

2 soldiers, 2 terrorists killed in Pak clashes
Islamabad, Jan 6 : Two soldiers and two terrorists were killed in clashes in Pakistan's Khyber Pakhtunkhwa province, an army statement said. The

PTI govt returned favour to donor by awarding luxury hotel contract
New Delhi, Jan 6 : The incumbent ruling party, Pakistan Tehreek-e-Insaf (PTI) received funding from an individual who owns an offshore company Dreshak