December 5, 2021
2 mins read

US market in quandary as more Chinese firms leave

Didi is the first Chinese company, which announced that it would delist from the NYSE after the SEC issued its new regulation….reports Asian Lite News

 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.

ALSO READ: Taliban bring back dark ages in Afghanistan

Previous Story

‘Cancer you picked the wrong girl’

Next Story

The Walking Brahmin: History From Vantage Point

Latest from -Top News

AU Backs New UN Libya Roadmap

The Roadmap seeks to resolve the Libyan crisis through a political process centred on institutional unification…reports Asian Lite News The Chairperson of the African Union Commission (AUC), H.E. Mahmoud Ali Youssouf, has

Sudan Feels Impact of GERD

The GERD project remains a point of contention among Nile Basin countries….reports Asian Lite News Water levels in Sudan’s Blue Nile have fallen to record lows following Ethiopia’s announcement that it has

UNESCO sounds alarm on teacher gap

Amina Mohammed proposed a five-point plan to strengthen the profession through greater investment, gender equality, support for digital learning…reports Asian Lite News At the UNESCO World Summit on Teachers in Santiago, Chile,

Modi Ends China Trip, US Hails India Ties

US termed India-US ties as a “defining relationship of the 21st century”, stating that partnership between both countries continues to reach new heights….reports Asian Lite News Shortly after videos and images of
Go toTop

Don't Miss

Kash Patel to U.S. Foes: Beware

Patel became the agency’s ninth director, succeeding Christopher Wray for

Biden, Netanyahu Discuss ‘Tactical Pauses’ in Gaza War

White House representative John Kirby emphasised ongoing communication between the