Chinese stocks risk U.S. delisting

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The increase in the regulatory scrutiny of the Chinese companies that quote in the United States has fueled the concerns that threaten, threatening the decade of more than Alibaba and other Chinese companies in US exchanges.

A broad “all on the table” comment by the United States Secretary of the United States, Scott Besent, on April 9, has revived fears in Wall Street that hundreds of billions of billions can flow in a forced expulsion or in Chinese actions of the US bags. UU.

Thanks to the latest version of a law made in 2020, the US stock and values ​​commission. UU. It can promote an exclusion of Chinese actions if the company is considered not made up of audit applications for two consecutive years. Paul Atkins, jury on Monday as president of the SEC, indicated a hearing at a hearing last month that would maintain that process to analyze the Chinese actions that quote in the United States.

The continuous analyst and the press coverage of Besent’s comments reflects how uncertainty is expanding, even guaranteeing a related piece on the New York Post tabloid.

“In an extreme scenario, US investors can have to liquidate holdings of US $ 800 billion in Chinese actions if they are forbidden to invest in Chinese values,” said Goldman Sachs in a note last week.

They predicted that Chinese investors may also need to sell their financial assets in the United States, with an estimated value of approximately $ 370 billion in shares and $ 1.3 billion in bonds.

Kraneshares, which executes a popular fund funds of $ 5.9 billion in the United States that tracks Chinese actions, told its clients last week that the elimination of Chinese companions was a “low probbility.” Duration of recoil an earlier round of fears of the list in 2022, the company began to change most of its Kraneshares CSI China Internet ETF (KWEB) Taking into account the shares quoted in Hong Kong of Chinese companies that quote in the United States. Kraneshares reiterated to adopt that approach in the “unlikely event” that Chinese companies are eliminated in the United States

Alibaba listed additional actions in Hong Kong in 2019, five years after an initial mass public offer in New York. While Baidu, JD.com and several other Chinese companies have also offered actions in Hong Kong in recent years, Temu Parent PDD Holdings Not yet he has not done so.

PDD did not respond immediately to a request for comments from CNBC. The electronic commerce company moved its headquarters from China to Ireland in 2023.

The backdrop here is the “AMERICA First Investment Policy” memorandum of the president of the United States, published at the end of February. He requested a review of US investments in Chinese entities, as well as a renewed scrutiny of Chinese companies that are quoted in the stock market, both through common -use list structures and through the Hold Holding Holding Company Law Companies responsible Thame Law.

Memorandum is a broad mandate for many government agencies, including the SEC, “to enforce existing rules and create new rules” related to Chinese colleagues in the United States, said Winston Ma, an attached professor at the Nyu Faculty of Law.

MA, author of “the digital war: how China’s technological power shapes the future of AI, the block chain and cyberspace,” he said that if regulators act now, they could use a period of tax reports that end April 2025 as “two years” the period of completion of two years “necessary for elimination.” The elimination could come faster than you think, “he said.

The Public Company Accounting Supervision Board, which falls under the supervision of the SEC, said in 2022 that it was able to inspect the audit records of Chinese affected companies potentially. For now, “there are no emitters at risk of having their values ​​subject to a commercial prohibition” according to the law, in accordance with the SEC website.

The SEC did not immediately respond to the request for comments from CNBC, while the PCAOB declined to comment.

The Select Committee of the Chamber of Representatives of China at the end of last week sent letters to the CEO of JPMorgan Chase, Jamie Dimon, and the CEO of the Bank of America, Brian Moynihan, demanding that investment banks retire from subscribing to the contemporary amperex of Hong Kong technology. Jpmorgan declined to comment, while Bank of America did not respond.

Trump’s recent Harvard also means more scrutiny about how the endowment funds of American universities have made billions of their Chinese investments.

The Chamber Committee previously cited the investigation of the United States Future Union Defense Group on how US pension funds and university endowments have invested in China.

“Atkins is under pressure to take an assertive position against decades of double duplicate stubs,” said Future Union Executive Director Andrew King, in an email. He is also managing partner of the Risk Capital firm based in San Francisco Bastille.

“The elimination is in excess, and China is exposed on its hand by stone regulators and lengthening boxes such as Luckin coffee fraud with inaction,” he said. “Now they will lose their way to secondary financing without supervision.”

The China Stock Regulator has tried to increase its supervision of national colleagues abroad, especially after the OPI of the DIDI travel transport company in the United States in 2021 and its subsequent delist. According to the new process of the Chinese Securities Regulator, few large Chinese companies have been able to list in the United States in recent months, including the Chinese milk tea company Cálee Last week.

As the prolonged delay on a binding legal divestment of Tiktok has demonstrated, concerns about elimination could exaggerate, at least in the short term. Investors, however, can choose to vote with their feet first.

The White House is pointing out a possible flexibility in China’s tensions. The United States Secretary of the United States, Scott Besent, told investors on Tuesday that he expected the American-China trade war to be dismissed in the “very close future,” said a person in the room to CNBC. The comments occurred one day after China promised reprisals against countries that follow calls to isolate Beijing.

The CEO of Nvidia, Jensen Huang, visited China and with several prominent figures. Huang had an official meeting with the Vice Prime Chinese Minister that Lifeng in Beijing on Thursday, and, according to the reports, Liang Wenfeng of Deepseek. The latest PEW research survey of the Americans found a soft in the negative opinions about China.

Local governments in China mullant Bitcoin sales to prop up empty coffers. Reuters reported that consideration on Thursday. China has banned cryptocurrencies for years, and local authorities with liquidity problems have the leg in the seized assets. Unemployment among young Chinese aged 16 to 24 fell to 16.5% in March, below 16.9% in February, according to official data.

Chinese and Hong Kong actions quoted in positive territory on Wednesday when investors cheered the possible flexibility of commercial tensions between the United States and China.

The CSI 300 of Continental China increased 0.15%, while Hong Kong Hang Seng index includes several important Chinese companies, rose 2.16% at 11:00 am local time.

Since the beginning of this year, CSI 300 has lost 3.7%, while the Hang Seng index has increased 9.67%.

The 10 -year reference Chinese government bonds increased slightly 1,660%.

The Chinese Yuan on the high seas marginally strengthened 7,3049 against the Back Greenback.

April 27 – 30: Permanent Committee of the Parliament of China to meet and review a private sector support law

April 30: Official Index of Purchasing Managers for April; Caixin Manufacturing PMI

May 1 – 5: Chinese Labor Day Holidays