A trader works on the floor of the New York Stock Exchange (NYSE) after the opening bell of the trading session on March 13, 2020 in New York, USA.
Lucas Jackson | Reuters
GUANGZHOU, China – Major publicly traded Chinese technology stocks trading in Hong Kong were pounded Thursday amid concerns that some US companies could be delisted
Hong Kong stocks in US-listed Chinese technology stocks fell sharply. Alibaba fell over 4% at 1:04 p.m. Hong Kong time, Baidu fueled 8%, JD.com fell over 4%, and NetEase was down nearly 3%.
It comes a day after the SEC passed a law called the Holding Foreign Companies Accountable Act, passed by former President Donald Trump’s administration.
Certain companies identified by the SEC must be vetted by a US watchdog. These companies are required to file certain documents to determine that they are not owned or controlled by a government agency in a foreign jurisdiction.
Chinese companies must designate every board member who is a Chinese Communist Party official, the SEC said on Wednesday.
The US regulator could suspend trading in securities that violate its regulations.
Chinese tech companies are not only under pressure from the overseas delisting threat, but they are also concerned about tougher regulations domestically. Beijing has tried to take power from the tech giants and set new rules in areas from financial technology to e-commerce.
While the Chinese government’s crackdown on billionaire Jack Ma’s empire began, including the suspension of the Ant Group’s mega IPO, there are signs that Beijing’s goals may go beyond Ant.
Reuters reported this week that Tencent founder Pony Ma met with Chinese antitrust officials this month. Tencent is only listed in Hong Kong and its shares were down more than 2% at 1:17 p.m. Hong Kong time.
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