The delisting of Chinese stocks in the United States may have a turnaround. Bloomberg quoted sources as saying that China is considering allowing US regulators to have access to all audit papers of most US-listed Chinese companies. As for companies that hold sensitive data It may be ready to delist, and the news stimulated the Chinese concept stocks to rise in the early part of the US stock market opening. Analysts said that the rumors surprised the market, and there are still concerns about whether the Sino-US negotiation can reach a consensus. If the news is true, it is expected that the Chinese side may be more strict on companies listing in the United States in the future.
The sudden transfer of concessions in the stock market speculation
The report mentioned that China has made a rare concession on the issue of reviewing the audit manuscripts of Chinese concept stocks listed in the United States. It plans to provide full access rights to US regulators as soon as the middle of this year. further decoupling of the body.
Chinese stocks rose sharply after the U.S. stock market opened on Friday, Alibaba (09988) closed up 1.29% at HK$107.92, still 1.62% lower than Hong Kong; NetEase (09999) rose 6.82%, Baidu (09888) rose 6.55% and Didi soared 12.8%. The Nast Golden Dragon China Index, which reflects the performance of Chinese concept stocks, rose 4.7%. The Hang Seng Index also bounced more than 300 points in the early part of the night session, and closed at 22,170 points, up 144 points, 130 points higher than water. The ADR Hong Kong Stock Ratio Index closed at 22,080 points, 41 points higher than the local close.
Companies with sensitive data may be delisted
People familiar with the matter pointed out that the China Securities Regulatory Commission and other regulators are drafting a framework plan to keep most Chinese stocks listed in the United States, but the authorities are ready to accept the delisting of some state-owned and private companies with sensitive data. An agreement could be reached with the United States around the summer. There are currently more than 200 Chinese companies listed in the United States, of which 8 are state-owned enterprises.
The framework plan is expected to clarify which data triggers national security concerns, the sources said. Regulators are debating whether companies that process consumer information, such as Alibaba, would automatically fall into this category, one of the people said, but argued that companies that process large volumes of information may not necessarily pose a security problem. The report also revealed that the framework plan has the opportunity to touch the overseas listing approval process of Chinese-funded enterprises, including the regulation of the VIE (variable interest entity) structure, etc., but the details are still under discussion, or may be adjusted, and need to obtain top leadership. Approved.
According to the analysis of the report, if the negotiation proceeds at the above-mentioned progress, it will mark an unusual turn of events for the Chinese side to end the disputes between China and the United States over the audit papers over the past decades, especially when the United States has set a deadline of 2024 for the Chinese concept stocks to avoid delisting. At one point, the dispute between the two sides heated up. The analysis also said that at a time when the mainland economy is facing challenges, concessions at this time may reflect its willingness to balance national security with the needs of investors and businesses.
More stringent checks on listing in the United States
However, some people in the fund industry are worried that even if the Chinese side is willing to let the US regulators review the audit documents of Chinese concept stocks, there may still be many additional conditions. The outcome of institutional deliberations. Zhou Xiucheng, senior vice president of ABC International’s research department, said that the market did not expect China to make such a big concession. The news and attitudes released by China and the United States earlier were different, and it is expected that it will take a long time to negotiate before a result.
Furui believes that the rumor that the Chinese side has allowed access to the audit papers is consistent with the bank’s view that the issue of audit papers is “solvable” for China. Furui said that the refusal of foreign regulators to request Chinese companies’ audit papers is a policy implemented in the 1990s and is now outdated. The bank believes that China’s basic policy is to integrate into the global economy and community, including financial markets. It is not in China’s interest to keep the stock market out. However, Furui estimates that China may have stricter controls on companies listing in the United States in the future. It is expected that state-owned enterprises will no longer be listed in the United States. Technology companies with sensitive data may not be allowed to list in the United States, while existing Chinese concept stocks may be listed. Asked to spin off businesses involving sensitive data or face delisting.