Technology

The US imposed a new order, Chinese technology shares plummeted


Shares of some Chinese technology firms fell sharply in Asia after the US authorities imposed new regulations, leading to the possibility of being delisted on the US stock exchange.

The Act requiring responsible foreign companies was signed by former US President Donald Trump in December 2020 with the aim of removing Chinese businesses from the US stock exchange if they do not comply with the 3-year audit standard consecutive. The law also requires firms to prove to the US Securities and Exchange Commission (SEC) that no foreign entity or government owns / controls them.

In Hong Kong, this news caused a series of shares of Chinese dual-listed companies to plummet. For example, Baidu shares fell 8.85% in early March 25 trading, Alibaba fell 4.2%, JD.com fell 4.45% and Netease fell 3%. It is in contrast to the 0.2% gain across the Hong Kong Hang Seng Index.

According to Louis Tse, managing director of Wealthy Securities, many investors think that the US administration under President Joe Biden may be lighter on China and it will be easier. However, the latest move shows that this is a false assumption.

Strategist Margaret Yang said China-listed stocks were under pressure after China considered establishing a joint venture to oversee data that technology firms collect. It signals the government to take tighter control over the technology sector.

Some analysts believe that Chinese companies listed in the US may not comply with US audit requirements because of the risk of violating the law at home, especially those related to national data. National security.

The SEC is still looking to implement the rest of the new law’s requirements, including a verification process and transaction restriction requirements.

Du Lam (According to Reuters)

5 years focusing on science and technology self-reliance of China

5 years focusing on science and technology self-reliance of China

Self-reliant science and technology play a central role in China’s latest 5-year plan. This is the result of recent tensions with the US and the West.

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