Morgan Stanley cautions against Chinese ADRs as delisting looms
05/14/2021 13:24
SHANGHAI (Reuters) - Morgan Stanley cautioned on Friday against exposure to U.S.-listed Chinese tech firms after the U.S. accounting watchdog moved a step closer to removing non-compliant Chinese companies from American exchanges.
The Public Company Accounting Oversight Board (PCAOB) on Thursday proposed a new rule that signals steady implementation of steps to delist U.S.-listed Chinese companies whose audit work paper cannot be accessed by the PCAOB.
Morgan Stanley said in a research report that the move is negative to Chinese American Depositary Receipts (ADRs) that are already suffering from Beijing s tighter internet regulations, and simmering concerns of rising inflation, which bodes ill for growth stocks.
Plant-Milk Maker Oatly Aims for $1.6 Billion Nasdaq Listing, Though Chinese Backing Could Prove a Problem
Oatly plans to further expand its business in China, its biggest Asian market, according to the prospectus. Photo: Oatly
Major plant-based milk-alternative maker Oatly Group AB has spelled out its IPO pricing, though questions remain about whether its ties with a Chinese state-owned backer could affect its Nasdaq listing.
The Swedish company expects to raise up to $1.65 billion with an offering price of between $15 to $17 per American depositary share, it said in its updated
prospectus on Tuesday. That would give it a $10 billion valuation.
As of March 31, conglomerate China Resources (Holdings) Co. Ltd. and Belgium-incorporated Verlinvest S.A. jointly hold 55.9% of Oatly through the 50-50 joint venture Nativus Co. Ltd., according to the filing.
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PCAOB Proposes Rule to Create Framework for HFCAA Determinations By
May 13, 2021
The Public Company Accounting Oversight Board has proposed a new rule provide a framework for its determinations under the Holding Foreign Companies Accountable Act, or the HFCAA.
The HFCAA calls for the Board to determine whether it is unable to inspect or investigate completely registered firms located in a foreign jurisdiction because of a position taken by an authority in that jurisdiction. The HFCAA, among other things, also mandates that after the Board makes such a determination, the Commission shall require covered issuers that retain firms subject to the Board’s determination to make certain disclosures in their annual reports and, eventually, if certain conditions persist, shall prohibit trading in those issuers’ securities.