The love affair between Wall Street and Chinese companies comes to an end

Posted on Dec 5, 2019 2021 at 16:07Updated Dec 5, 2019 2021 at 16:17

In the markets, love sometimes lasts only a few months. Listed on the New York Stock Exchange last June, Didi Chuxing, the Chinese equivalent of Uber, is already slamming the door of Wall Street to go and list in Hong Kong. This decision comes in a context of growing rivalry between Beijing and Washington: the American market policeman is preparing to give a regulatory screw-up targeting foreign companies listed on American markets. While on the other side of the Pacific, Chinese authorities are putting pressure on Chinese companies to encourage them to come back and list in China.

In the United States, the Securities Exchange Commission (SEC) detailed Thursday the conditions for the application of a law requiring more transparency from foreign companies listed on the NYSE and Nasdaq. This law passed by Congress in December 2020 requires that they have their accounts audited by approved companies, otherwise they could find themselves ejected from the American markets within three years. A rule to which Chinese companies have always refused to comply.

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