The threat to kick China out of U.S. exchanges is growing, and Hong Kong stands to benefit

Those who are exposed to china adrs – is this a CEO on a US listed in Chinese, or an equity strategist facing a question: Does everyone consider stock stock in stock in stocks?

Some of the largest Chinese companies in the US, including JD.com (No. 47 of Fortune Global 500), Alibaba (No. 70) and PDD Holdings (No. 442). But these giants and very little companies will have their existence as US-traded companies threatened by a living war against Beijing launched by President Donald Trump.

Last week, many Republican members, including representative John Moolenaar, Chaird of the House Choose the Communist Committee of the Chinese Communist, Written recently appointed Securities and Exchange Commission Cair Atkins in “expressing serious concern in the continued presence of Chinese companies in US Stock Exchanges.”

In a letter reported to THE Periodic Period,, Lawmakers teach the listed Chinese companies, large and small, from giants like Alibaba and JD.com in the Vony.AI.

‘Everything is on the table’

Delising concerns grow Since late FebruaryWhen Trump released the threat of kicking Chinese companies driven by the US in his “America’s first investment plan.” In his memo, Trump directed officials to find out if Chinese companies prompted the US auditor’s patterns and Check structures These firms are used to list foreign exchange.

Since then, administrative officials refuse to move against the Chinese listings, with Treasury Secretent Scott Besternt referring to the interview in the middle of April TV interview “Everything is on the table. “

“The threat is growing in an important manner,” Sandeep Rao said, a researcher of the leverage of leverage.

The NASDAQ Golden Dragon Index, which tracks Chinese companies listed in the US, falls to about 7% since “liberation day.” By comparison, the Hang Seng Tech Index Index, which tracks tech-traded companies (including some US sellers) falls at the same time.

China companies have long been back to the deep US liquid market to raise capital. Alibaba’s IPO in New York Stock Exchange in 2014 raised $ 25 billionThe world’s largest IPO in time, and replaced only by the 2019 Saudi Aramco list of Riyadh.

As the end of March, 286 Chinese companies are listed in US exchanges, with a sum of $ 1.1 trillion, according to exchange data in South China Morning Post.

However US investors murmur about bad patterns of auditing companies in China. In technical way, companies listed in the US should open their books on US regulators, but Chinese officials often access National National Security. The 2020’s Revelation that China’s coffee coffee coffee in coffee profitable sales is the last straw for Congress, which passes foreign companies ordered by Chinese companies To provide access to US regulators or risks to drop us out.

After years of negotiation, China in 2022 agreed to allow us to regulators to review auditing documents to The Chinese City of Hong Kongto lift the command command and calm down investors.

However, the damage has been done, while the Chinese Company listings begin to explore secondary lists in Hong Kong. Last year, Alibaba Upgraded Hong Kong list On a main list, allowing the Chinese E-Commerce Company to tap Mainland Chinese Investors through Southbound Connect Schene.

Some investors “shifted from holding the US Ticker to Hong Kong Ticker because of the threat of Delikanh,” Rao said.

Hong Kong can be a winner

In the middle of April, Goldman Sachs estimated that instance instances of $ 830 billion parts of Chinese companies, spread to Mainland Chinese, Hong Kong, and the markets of Kong, and US. About $ 250 billion in china adrs.

However, “the equations of foreigners, especially US holders, with perfect part of the jpmorgan references to a five-year-olds when the possibility of disputes.” The risk is certainly reduced. “

Rao is designed that US investors can still continue to sell Chinese companies even if they have a dangerous – it’s in the less protected OTC market. Tencent, one of the largest Tech Campies company, has a main list of Hong Kong, but also trades in the US OTC market.

Meanwhile, Chinese companies murmur about other options. In a conversation with journalists in the shanghai auto show, Pony.ai James Peng said a secondary list of Hong Kong is possibleEven confirms the start focuses on the release of the next generation of cars.

Geely Auto Also take The US listed listed in AV Brand Zeekr private one year After New York IPO, to streamline auto auto operation and enhance the profit.

In the middle of April report, Goldman Sachs highlighted 27 listed Chinese companies most likely to be placrop movement in Hong Kong, including PDDED

But some companies in China have geopolitics to keep a US list. Chagee, a chain of tea in China, raised $ 411 million In a US IPO, debuting NASDAQ on April 17.

Hong Kong is like a more attractive-or, at least, a less evil place in trading parts. A primary city list opens the possibility of Mainland Chinese Investor who sells company shares. Southbound Flows (ie from Mainland China to Hong Kong) improved in recent monthsAs Mainland Chinese Investors Baril The AI ​​Boom represented by companies like Alibaba and Semiconductoration International Moufacturing Corporation.

“It’s a reasonable with, at least, a secondary list of Hong Kong if you are a US listed in Chinese,” Rao said.

The city passes through a IPO change, because Mainland Chinese Companys now hopes to tap Global Capital through an “Overseas” list. Last November, a $ 4 billion IPO by mideogaThe greatest house-making house at home, kicked things up; Mixue, a ice-cream chain with lots of outlets than McDonald’s, followed by March.

Hong Kong expects at least two more blockbusters IPOS in the coming months. CATL, the main supplier of batteries for Tesla, hoping raising $ 5 billion In Hong Kong in the near future. (JPMorgan and Bank of America helps IPO, with attracted to congressional examination.) Chinese Automiger Chery Auto also prepared For a Hong Kong Listing to maximize $ 1.5 billion.

But Hong Kong is not a perfect replacement for New York. “No positives from it. The liquidity of Hong Kong is not the same in the US,” says Chui on Wednesday.

This story originally shown Fortune.com

Source link