Chinese stocks under pressure as Weibo faces delisting possibility
Yahoo Finance
Thu, March 24, 2022, 2:50 PM
The major US stock indices are higher, but one group of stocks are under pressure today. And those are the Chinese stocks, or I should say, the US-listed American depository receipts of Chinese companies. Now some of the major names on your screen include Alibaba, Baidu, Pinduoduo, JD.com, as well as Tencent. They're all under pressure and falling this afternoon. And this is coming amid increased regulatory scrutiny and the threat of delisting in the US for another major Chinese company.
Now, Weibo, China's Twitter equivalent, has been the latest major Chinese company to be added to a delisting watchlist by the US Securities and Exchange Commission for apparently failing to fully cooperate with the rules set by the SEC's Public Company Accounting Oversight board. Now these require that foreign firms that are listed in the US allow their books to be audited.
But now with this addition of Weibo, that suggested to investors that other major Chinese companies, like Alibaba, Baidu, et cetera, could also be at risk of facing future delisting or at the very least of also being added to this watchlist. So we shall see how this evolves. But again, for now, shares of the major US-listed Chinese companies under pressure this afternoon.
Chinese stocks under pressure as Weibo faces delisting possibility (yahoo.com) |
