Title: China is cranking on US capital rising for Chinese firms - mutual decoupling Post by: paxmao on July 14, 2021, 10:20:57 AM Until recently, Chinese firms were able to list on Nasdaq - not exactly as other companies, but still able to rise funds and gaining liquidity by doing so. A large number of companies (https://finance.yahoo.com/news/top-chinese-companies-nasdaq-204951946.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAEXvkFg31m2FbZBMoq3fca2yjyHHxisw8MgrJY94BdE0oD0-12_AqJFSEtcJIoGIGcT1yGBJa4x4pdhgcBq1aGQyJnseWdQZ492OT3b6pOA2b6opaU90smcqh1H7FDABm2pmovdoF72Gepn3PzcagbNcJEgtWXOdQM8rs05QtV8t) are "allowed" this type of listing. However, a couple of things are happening that draw a gloom path for the future.
Firstly, many companies are delisted for not meeting the requisites of NASDAQ. These requisites are not really thought, but there seems to be a strong cultural problem on how China understand the concept of rising capital compared to US. An average Chinese distrust anything that looks too good, or even minimally good. The listings are oftentimes based on inaccurate information (to say it softly). Not that many western companies do not ever lie - misleading information is all over - we are talking about plainly cooking the figures for sales, growth, etc... Secondly and more recently, the Chinese government has taken direct actions on recently listed companies that have caused significant drops in valuation, directly burning any investor. It seems that China is decoupling its economy from foreign funds, but also NASDAQ is de-listin (https://www.cnbc.com/2021/01/05/heres-what-happens-if-you-own-a-share-of-a-chinese-company-that-gets-delisted.html)g when they fail to meet reporting and honest information requirements. (source The Economist and other outlets). Quote Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://www.ft.com/tour. https://www.ft.com/content/0dd3f1b4-705a-4ea4-9ade-3e105b4cfe1f The probe by the Cyberspace Administration of China was announced two days after Didi’s July $4.4bn initial public offering, the biggest in the US this year. The investigation, which could last up to 10 weeks, came after the CAC asked Didi to consider delaying the IPO until after an internal review of its data security, according to people familiar with the matter. https://www.ft.com/content/0dd3f1b4-705a-4ea4-9ade-3e105b4cfe1f (https://www.ft.com/content/0dd3f1b4-705a-4ea4-9ade-3e105b4cfe1f) |