A trader works on the floor of the New York Stock Exchange (NYSE) after the start of the trading session in New York, USA on March 13, 2020.
Lucas Jackson | Reuters
GUANGZHOU, China – Trading in Hong Kong’s main dual-listed Chinese technol shares was attacked on Thursday amid fears that some companies could be de-listed in the US.
U.S. Hong Kong shares of listed Chinese tech stocks fell sharply. At 1:04 a.m. Hong Kong time, Alibaba was down 4%, Baidu was up more than 8%, JD.com was up more than 4% and Netiz was down about 3%.
A day after the US Securities and Exchange Commission (SEC) enacted a law called the Holding Foreign Companies Accountable Act, which was passed by the administration of former President Donald Trump.
Some companies identified by the SEC will require auditing by the US Woodward. These companies will have to submit certain documents to establish whether they are owned or controlled by a government entity in foreign jurisdiction.
The SEC said on Wednesday that Chinese companies would have to name each member of the board, who is an official of the Chinese Communist Party.
U.S. The regulator can stop trading securities because of its rules.
Chinese tech companies abroad are under pressure from delisting threats abroad, but also worry about stricter regulations at home. Beijing will rule in the power of technology giants and establish new rules ranging from financial technology to e-commerce.
While the Chinese government’s current began with the empire of billionaire Jack Mana, including the suspension of Ant Group’s mega early public offerings, there are indications that Beijing’s goals could go beyond the ant.
Reuters reported this week that Tencent founder Pony Mae met with Chinese anti-trust officials earlier this month. Tencent is only listed in Hong Kong and its shares were down more than 2% at 1:17 pm in Hong Kong.
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