Some $1.5trn of Chinese company shares trade in New York. But those listings have already been threatened by American regulations
public share sales have been as tortured as Didi Global’s. Within four days of raising $4.4bn in New York in June the Chinese ride-hailing group was hit with an investigation by the authorities in its home market and its mobile application was dropped from app stores in China, preventing new customers from using it. The firm’s share price remained above its initial public offering price for just three trading days and has since fallen by more than 40%.
Many have held out hope for an eventual agreement between American and Chinese regulators that would revive a once-booming cross-border listing business. Not long ago American exchanges were the leading destination for thes of Chinese tech groups such as e-commerce giant Alibaba and online services group NetEase.
Such action—an unprecedented intervention by a foreign government in the American market—would make an agreement between America and China far more difficult to strike, says Jesse Fried of Harvard Law School. “Didi’s exit will thus be a preview of what is to come,” he says. China’s growing regulatory reach should also raise alarms for global investors. Until now no Chinese enforcement body has sought to control Chinese listings in foreign markets. But new rules give thes. These rules may also apply to share sales in Hong Kong.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China's SenseTime postpones $767 mln Hong Kong IPO after U.S. banChinese artificial intelligence start-up SenseTime Group postponed its $767 million Hong Kong initial public offering (IPO) on Monday after being placed on a U.S. investment blacklist.
Read more »
The Triceratops Sex Position Will Totally Blow Your MindWe promise it's sexier than it sounds.
Read more »
Can Facebook be blamed for pogroms against Rohingyas in Myanmar?That Facebook was used to spread rhetoric that incited carnage in Myanmar is hardly up for debate. But whether it is liable for the subsequent events is less clear
Read more »
At Least 53 People Dead After Truck Carrying Migrants Crashes In MexicoDozens of migrants are dead, and several others injured after the crash
Read more »
At Least 53 People Dead After Truck Carrying Migrants Crashes In MexicoDozens of migrants are dead, and several others injured after the crash
Read more »
Josh Duggar’s Shame and OursWhy did America fall in love with a family of extremists? onesarahjones:
Read more »