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.