Salem Radio Network News Sunday, January 16, 2022

Business

U.S.-listed Chinese shares take a knock as Didi to exit NYSE

By Medha Singh

(Reuters) – U.S.-listed shares of Alibaba, Baidu, JD.com and other Chinese firms fell on Friday as ride-hailing giant Didi Global Inc’s decision to delist from the New York Stock Exchange added to worries over stricter regulatory scrutiny at home and tense Sino-U.S. relations.

Shares of Didi, which is now pursing a Hong Kong listing after succumbing to pressure from Chinese regulators concerned about data security, were down 6.5% at $7.29. The company had priced its IPO at $14 apiece in June to raise $4.4 billion.

“It will now set a precedent for other U.S.-listed companies, especially those with data concerns,” said Justin Tang, head of Asian Research at United First Partners, Singapore.

“The crackdown started with Ant’s botched IPO. The Chinese government has already shown that it will go beyond what the market has expected. It will be a while before sentiments thaw in relation to Chinese names.”

Heavyweights Alibaba, Baidu and JD.com shed between 4.5% and 5%, with investors on edge as Beijing targets sectors ranging from gaming to education.

Education companies TAL Education and New Oriental Education & Technology Group fell 4.5% and 6%, respectively.

KraneShares CSI China Internet ETF dropped about 4%, plumbing lowest in nearly two years, while e-commerce platform Pinduoduo, mobile game publisher Bilibili, live-streaming gaming platforms operator HUYA dropped between 5% and 6%.

Meanwhile, the U.S. Securities and Exchange Commission said on Thursday Chinese companies listing on U.S. stock exchanges must disclose whether they are owned or controlled by a government entity, and provide evidence of their auditing inspections.

(Reporting by Medha Singh in Bengaluru, additional reporting by Anshuman Daga in Singapore; Editing by Sriraj Kalluvila)

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