Squeezed in the US: 80 other Chinese companies risk delisting from Wall Street
More than 80 US-listed Chinese stocks, including JD.com and Pinduoduo, have been included in a new pre-delisting list, with a total of 105 Chinese stocks on the list. Some scholars have argued that if all Chinese stocks on the list were forced to delist, the growth rate of Chinese foreign exchange reserves would be significantly affected. The ability of the Hong Kong market to raise funds after the National Security Act, which restricted its freedom, is unmatched, and it will be difficult to replace the delisting of Chinese technology stocks in the US with other funds.
US Secretary of State Blinken originally planned to give a speech Thursday (May 5), US time, to announce the US government's new plan to deal with China, but Blinken's speech was delayed due to of coronavirus diagnosis. However, the United States continued to take action against China. The delisting list already existed, but contained only 45 companies, but now there are 125. They will have until May 25 to present counter arguments.
According to the Foreign Company Accountability Act (HFCAA) passed by the United States Congress in December 2020, companies listed in the United States are required to open the company's accounting information to competent US agencies for auditing. If companies on the list refuse the audit requirements for three consecutive years they will run the risk of being de-listed, and this also applies to newly listed companies.
In this regard, Chinese Foreign Ministry spokesman Zhao Lijian said that Chinese securities regulators have communicated with the relevant US departments. For China, the delisting is not obvious and will depend on the results of the US-China talks.
These facts show greater US interest in controlling US capital to China and Beijing's penetration of North American financial markets. It is also a way to put pressure on Beijing in a moment of tension with Russia, in which China's position can be very important.
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The article Stretta in the USA: other 80 Chinese companies risk delisting from Wall Street comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/stretta-negli-usa-altre-80-societa-cinesi-rischiano-il-delisting-da-wall-street/ on Sat, 07 May 2022 06:31:28 +0000.