With the strengthening of regulatory policies in the United States and China, the United States SEC announced the issuance of new regulations, and Didi Chuxing announced its delisting from the United States. China concept stocks ushered in Black Friday on Friday, and China concept stocks such as Didi and Alibaba were bloodbathed.
Before the deadline for Friday morning (about 11:40 on Friday night Taipei time), Didi Travel (DIDI-US) suffered a blood loss of 13.59%, Pinduoduo (PDD-US) plunged 7.73%, and Baidu (BIDU-US) plunged 7.85% , Alibaba (BABA-US) plummeted 8.70%. Invesco Golden Dragon China Portfolio ETF (PGJ) plunged 7.77%.
The US Securities and Exchange Commission (SEC) approved amendments on Thursday to finalize the details of the Foreign Company Accountability Act (HFCAA), requiring foreign companies listed in the United States to disclose more information about audits, otherwise they may be forced to delist within 3 years , Is expected to affect 270 Chinese companies.
The new law allows the SEC to delist foreign companies that have not passed the PCAOB review for three consecutive years. If a company is listed by the SEC as a “committee-recognized issuer,” the company must submit documents proving that it is not owned or controlled by a foreign government, and disclose more information in the annual report.
Didi Chuxing (DIDI-US), which was listed on the U.S. Scenery on Thursday, was under constant pressure from the Chinese and U.S. governments. Less than six months after listing, Didi announced that it was delisting from the New York Stock Exchange and transferred to the Hong Kong stock market. Listed.
Didi’s statement pointed out that after careful study, the company will start delisting on the New York Stock Exchange and start preparations for listing in Hong Kong.
Wall Street Analysis
Bank of Singapore analyst Moh Siong Sim said that Didi’s delisting has made people uneasy about how this will affect the broader US-China situation.
According to LightStream Research analyst Shifara Samsudeen：「As we expected, Didi will first delist from the NYSE and begin to apply for listing on the Hong Kong Stock Exchange. The company is already facing a class-action lawsuit in the United States. It is predicted that Didi will repurchase its shares for $14 per share at the same IPO price as the United States. For a period of time, foreign investors stayed away from China Technology stocks. “
Li Nan, associate professor of finance at Shanghai Jiaotong University, said that it is no surprise that this is the only way Didi can survive, which may be a good thing for investors in the US market. In addition to data security, Didi has other related issues. The company withholds payments from drivers, charges high fees to drivers, and issues high-interest loans.