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China’s publicly traded tech giants Alibaba, Baidu and JD.com have lost billions of market value in just a few days.
The losses come amid a potential threat of delisting on US stock exchanges.
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As of Friday’s close in Hong Kong, the market value of the four dual-traded technology stocks fell by HK $ 468.64 billion, to about US $ 60.31 billion in three days, as calculated by CNBC for data accessed through Refinitiv Eikon. .
The following is a list showing how much each of the companies listed in the US has lost in terms of market value:
Alibaba – Lost HK $ 303.1 billion ($ 39 billion).
Baidu: lost 107.54 billion Hong Kong dollars (13.75 billion dollars).
JD.com – Lost HK $ 30.674 million ($ 3.95 million).
Netease: lost 27.334 billion Hong Kong dollars (3.52 billion dollars).
On Wednesday, the US Securities and Exchange Commission adopted a law that threatened to expel companies from the US stock exchanges unless they adhered to well-known US auditing standards. as “Foreign Companies Liability Law”. The law was approved by the administration of President Donald Trump.
Companies designated by the Securities and Exchange Commission will require an audit by a US regulator and must demonstrate that they are not owned or controlled by a government entity in a foreign jurisdiction.
The SEC said in a statement Wednesday that the companies will also have to appoint any of the board members who are officials of the Communist Party of China.
In addition to these regulatory uncertainties, Chinese tech companies also face potential challenges domestically as Beijing tightens its grip on the rapidly expanding sector and institutes antitrust laws in fintech and e-commerce.
Reuters reported earlier this week that the founder of Chinese technology company Tencent met with Chinese antitrust officials this month to discuss compliance in their group.
And in a high-profile crackdown last year, the IPO of “Ant Group” (which was billed as the world’s largest) was suddenly suspended a few days before its debut, billionaire Jack Ma, founder of Alibaba, who has control of that group.
Source: CNBC
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