The Straits Times
Investors swap China holdings from Wall Street to Hong Kong as delisting threat brews
US-listed firms including Alibaba, JD.com , NetEase, Yum China and New Oriental have already floated in Hong Kong.PHOTO: REUTERS
PublishedDec 14, 2020, 7:11 am SGT
https://str.sg/JaWm
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A worker at an automatic sorting machine for e-commerce giant JD.com, which is among the Chinese companies that might not be able to trade in the U.S. in three years. Kevin Frayer/Getty Images Text size
Individual investors who own Chinese stocks listed in the U.S. could see the most disruption from recent legislation that paves the way for delisting Chinese companies within three years a potential unintended consequence of a push aimed at protecting investors.
A lot is still unclear on how the Securities and Exchange Commission may implement the Holding Foreign Companies Accountable Act, which passed with bipartisan support and is expected to be signed by President Donald Trump. If U.S. and Chinese regulators don’t come to a compromise around longstanding audit and disclosure issues, U.S.-listed Chinese companies may need to find a new home and investors will have to decide if they should follow.
Investors swap China holdings from Wall St to Hong Kong as delisting threat brews businesstimes.com.sg - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstimes.com.sg Daily Mail and Mail on Sunday newspapers.
The threat is now real. The Holding Foreign Companies Accountable Act has been passed by both Chambers of the U.S. Congress and should soon be signed into law by Trump.
By Bill Schmick
01:08PM / Friday December 11, 2020 During the past few weeks of this presidency, both the Trump administration and Congress have levied additional sanctions against the People s Republic of China. Financial markets and U.S. corporations have largely ignored those efforts; here s why. Investors have learned over the past four years that tough talk on trade tariffs, blacklisting and other threats were largely ineffectual in curtailing the world s second largest economy. The facts are that U.S. tariffs on Chinese goods have been a failure. Our trade deficit with China is higher now than it was before the trade wars.