Chinese Companies on US Exchanges

Didi announced delisting from NYSE today and plans to list on HKSE due to Chinese regulators concern over its huge possession of user data. 

Alibaba and other Chinese companies also have subdued price movement in the past 1 year or so. In fact , Ali hits recent lows. 

Personal views

1. Chinese companies clamoured for  glory to list in US and, in the process, raised billions of dollars from investors worldwide.  They brought the money back to China. 

2. However, the Chinese government is not too happy citing different reasons over security, data issue and lack of  loyalty to country. 

3. It also wanted these mega companies to distribute some of their wealthy to social causes.

4. When astute investors and institutions see such a move by the government, they will be wary and avoid the stocks. Which i suspect it is happening now. 

5. Moving forward, the tussle between Chinese companies and its government will continue for some time. Things may get better if relationship between the 2 mega powers improve.

6. In meantime, it is best to avoid Chinese companies unless you have a strong faith in them and believe it will tide over this difficult period. 

7. With more companies going or planning for dual listing status, maybe it is better to buy direct from HKSE, SSE or SHSE.


免责声明:上述内容仅代表发帖人个人观点,不构成本平台的任何投资建议。

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  • EricVaughan
    ·2021-12-03
    A very logical point of view. Thank you for sharing. What you said is what I want to say!
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    • Pluto891
      thank you sharing same views. [smile]
      2021-12-04
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  • PageDickens
    ·2021-12-03
    Didi delisted from the New York Stock Exchange, and Hong Kong stocks also performed poorly today. The market does not seem to be optimistic about Didi.
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    • Pluto891
      If China liquidity market wants to rival that of US. It needs to retain good companies in her own turf and at the same time draw liquidity from all over the world to participate there.
      2021-12-04
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    • Pluto891
      I have vested interest in Didi. will hold n see how this fiasco pan out.
      2021-12-04
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  • DaisyMoore
    ·2021-12-03
    Tesla was also investigated because there were a lot of data from China. I think this is acceptable. No country wants its data to be leaked.
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    • Pluto891
      Tesla case is different. it has plant in China n it brings with it the manufacturing know how. it has other values. [Happy]
      2021-12-04
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  • MurrayBulwer
    ·2021-12-03
    I quite agree with you. I can understand the concerns of the two governments. So I will consider this when investing.
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    • Pluto891
      companies are purely commercial driven. they go where they can make money. it is the politics tussle that cause upheaval n make operating conditions unbearable. Just look at protectionism on the rise.
      2021-12-04
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  • ElsieDewey
    ·2021-12-03
    Will more Chinese companies withdraw from the NYSE or NASDAQ in the future?
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    • Pluto891
      certainly less companies will list there if they are what the Chinese regulators are doing to Didi n Ali. (Ma Yun have gone silent , did u notice that?)
      2021-12-04
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  • koolgal
    ·2021-12-06
    Yes it is a tug of war!
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