Today’s Nasdaq 100 winners topped this week’s opening match in Bindudu and Baidu. They increased by 15.5 and 8.8 percent, respectively. The reason: The dispute between China and the United States over the balance sheet revision of Chinese companies with second US listings has become easier.
The rule that did not yet allow any inspections by foreign supervisors to be carried out has been repealed, according to the China Stock Exchange Regulatory Commission (CSRC).
Accordingly, the shares of the affected companies listed on the American Technology Exchange jumped significantly, in some cases. At the top of the Nasdaq 100, for example, shares of e-commerce platform Pinduoduo gained double numbers, followed by shares of search engine operator Baidu.
On Saturday, the CSRC said it would change its confidentiality laws. Companies listed on US stock exchanges must be able to make sensitive financial information available to foreign supervisory authorities. The current rules, which were last updated in 2009, are outdated, according to the CSRC.
Such as financial times I mentioned, this is Beijing’s most significant move on this issue to date. It is also the first major change in China to allow disclosure of financial information outside the country.
However, US regulators said no deal that would halt the countdown to delisting was imminent. Only full compliance with US inspections will allow Chinese companies to continue trading in New York’s markets, the newspaper wrote financial times.
Again, there is only one declaration of intent from the Chinese side. Details are not clear. So far, nothing has been clarified with the American side. Therefore, the risk of delisting remains. DER AKTIONÄR will take up this issue in an upcoming issue.
(with material from dpa-AFX)
Stock trading in Chinese companies is associated with significant political and legal uncertainties. There is an increased risk of total loss for investors.