Shares of U.S.-listed Chinese companies surged on Wednesday as China signaled support for stocks.
Regulators in both countries are moving towards a plan to cooperate on Chinese stocks listed in the United States, according to Chinese state media. The report cites a meeting on Wednesday chaired by Vice Premier Liu He, who heads China’s finance committee.
A pedestrian walks past Alibaba’s Beijing headquarters.
Images by Sheldon Cooper/SOPA | Light flare | Getty Images
The Chinese government supports business registration overseas and said its crackdown on tech companies should end soon, according to the state media report.
Alibaba jumped 36.7%, JD.com 39.4% and Pinduoduo 56% on Wednesday.
The move comes as Chinese companies’ U.S. certificates of deposit were recently shot down amid regulatory and delisting fears. ADRs are shares of non-US companies traded on US stock exchanges.
The Nasdaq Golden Dragon China Index, which tracks the performance of U.S.-listed Chinese stocks, ahead of Wednesday’s trading session was down 38.8% in 2022 and 69.2% in the past 12 months. .
The Securities and Exchange Commission last week named five U.S.-listed ADRs of Chinese companies that failed to comply with the Foreign Company Liability Act.
The law allows the SEC to delist and even ban companies from listing on US stock exchanges if US regulators cannot review company audits for three consecutive years.
Last summer, Chinese regulators stepped up their oversight of Chinese stocks listed in the United States. Regulators have reportedly asked Chinese ride-hailing giant Didi to drop from the U.S. listing months after the company went public.
—CNBC Evelyn Cheng contributed to this report.
Chinese stocks trading in the US soar after China signals support for stocks
Source link Chinese stocks trading in the US soar after China signals support for stocks