U.S.-listed Chinese stocks take a hit as Didi exits NYSE

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Dec. 3 (Reuters) – U.S.-listed shares of Alibaba, Baidu, JD.com and other Chinese companies fell on Friday as rideshare giant Didi Global Inc’s (DIDI.N) decision to end. pulling off the New York Stock Exchange added to concerns over tighter regulatory control at home and strained Sino-US relations.

Shares of Didi, which is currently pursuing a Hong Kong listing after succumbing to pressure from Chinese regulators concerned about data security, plunged 22.2% to close at $ 6.07. The company had priced its IPO at $ 14 apiece in June to raise $ 4.4 billion. Read more

“This will now set a precedent for other companies listed in the United States, especially those with data issues,” said Justin Tang, head of Asian research at United First Partners, Singapore.

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“The crackdown began with Ant’s botched IPO. The Chinese government has already shown it will go beyond what the market expects. It will be some time before feelings deteriorate in the market. with regard to Chinese names. “

Alibaba fell 8.2%, Baidu 7.8% and JD.com 7.7% as investors were on the alert as Beijing targets sectors ranging from games to education.

Education companies TAL Education (TAL.N) and New Oriental Education & Technology Group fell 8.8% and 9.2%, respectively.

KraneShares CSI China Internet ETF fell 7%, while e-commerce platform Pinduoduo (PDD.O) fell 8.2%, mobile game publisher Bilibili fell 7.1% and the live gaming platform operator HUYA (HUYA.N) plunged 12.9%.

“From our perspective, all stocks listed in China, even Hong Kong, became non-investable with the crackdown in Hong Kong in mid-2020, so we sold our only stake (Tencent listed in Hong Kong) in August 2020 “said William de Gale. , co-founder and senior portfolio manager of BlueBox Asset Management, which does not own any Chinese ADRs.

Peter Kisler, portfolio manager of Trium Capital EM, said: “The problem is that all ADR holders could get stuck with Hong Kong stocks, and I’m sure there would be issues regarding the fact. that some people would not be allowed to hold them – thus be a forced sale.

Meanwhile, the U.S. Securities and Exchange Commission said Thursday that Chinese companies listed on U.S. stock exchanges must disclose whether they are owned or controlled by a government entity, and provide evidence of their audit inspections. Read more

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Reporting by Medha Singh in Bengaluru, additional reporting by Anshuman Daga in Singapore and Caroline Valetkevitch in New York, Marc Jones and Simon Jessop in London; Editing by Sriraj Kalluvila and Sandra Maler

Our Standards: Thomson Reuters Trust Principles.

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