Chinese stocks are getting crushed in Thursday's session. Here's what you need to know.
What Happened: Chinese stocks listed on American exchanges are trading lower, according to Benzinga Pro, due to delisting fears after a United States securities regulator lowered expectations of a deal to keep Chinese stocks listed on American exchanges.
The deal, under the Holding Foreign Companies Accountable Act, was to require Chinese companies listed on American exchanges to give audit information to American regulators. Beijing is concerned about information security, to that end it will not share audit data.
Why It's Important: If the compliance and auditing requirements dealt by the SEC to China aren't fulfilled, Congress notes about 250 Chinese companies will have to suspend trading, as early as 2024.
Several stocks sensitive to the news and moving lower in Thursday's session include:
- Nio Inc - ADR (NYSE:NIO)
- Alibaba Group Holding Ltd - ADR (NYSE:BABA)
- Baidu Inc (NASDAQ:BIDU)
- DiDi Global Inc - ADR (NYSE:DIDI)
- Xpeng Inc - ADR (NYSE:XPEV)
- Kanzhun Ltd (NASDAQ:BZ)
- Trip.com Group Ltd (NASDAQ:TCOM)
- Pinduoduo Inc - ADR (NASDAQ:PDD)
- JD.Com Inc (NASDAQ:JD)
- NetEase Inc (NASDAQ:NTES)
- PetroChina Company Limited ADR (NYSE:PTR)
- Bilibili Inc - ADR (NASDAQ:BILI)
- Li Auto Inc (NASDAQ:LI)
- KE Holdings Inc - ADR (NYSE:BEKE)
- Huazhu Group Ltd (NASDAQ:HTHT)
- Lufax Holding Ltd - ADR (NYSE:LU)
- IQIYI Inc - ADR (NASDAQ:IQ)
- Full Truck Alliance Co Ltd - ADR (NYSE:YMM)
- Futu Holdings Ltd (NASDAQ:FUTU)
- TAL Education Group (NYSE:TAL)
- JOYY Inc (NASDAQ:YY)
- Dingdong (Cayman) Ltd (NYSE:DDL)
