Those who exposed to Chinese Adr-Nohai will be the CEO of the Chinese company that lists the United States or a strategist engaged in a Chinese market-Tsper everything is considering one question: do the United States are collecting Chinese companies from its exchanges?
Some of the largest companies in China are trading in the US, including JD.com (No. 47 on Fortune Global 500), Alibaba (No. 70) and PDD Holdings (No. 442). But these giants and much smaller companies may have its existence because the US traded companies threaten a revived trade war against Beijing, launched by US President Donald Trump.
Last week several republican wrote recently appointed The chairman of the Securities and Exchange Commission, Paul Atkins, “expressed serious concern over the constant presence of Chinese companies on the US exchange.”
In a letter reported a Financial times. Legislators pointed to Chinese companies that listed the United States, large and small, from giants such as Alibaba and JD.com, to smaller startups such as EV Brand XPENG and self -managed Pony.ai car supplier.
“Everything on the table”
The hassle of the deviation grew From the end of FebruaryWhen Trump has revived the threat of expulsion of Chinese companies from US exchanges in its “American first investment plan”. In his note, Trump orders officials to determine whether Chinese companies support the US Audit Standards and explore structures These firms are used to list on foreign exchanges.
Since then, the administration officials have refused to exclude actions against Chinese companies that list the US, and the secretary of the Treasury Scott Baby noted in an interview with TV in mid -April that “All on the table“
“The threat is growing in a significant sense,” says Sandep Rao, Leverage Researcher.
The NASDAQ Golden Dragon China, which is monitored by Chinese companies listed in the United States, decreased by about 7% since the “release”. For comparison, Hong Kong’s Hang Seng Tech Index, which monitors technology companies traded in the Chinese city (including some who also trade in the US) decreased by 4.6% over the same period.
Chinese companies have long resorted to the US deep and liquid markets to gather capital. IPO Alibaba on New York Stock Exchange in 2014 raised 25 billion dollarsThe world’s largest IPO at the time, and only the Saudi Aramk list in Eriyada.
As of the end of March, 286 Chinese companies are entered on the US exchange, a total market value of $ 1.1 trillion, according to the exchange of data referring to Morning post South China.
However, US investors have grunted about bad audit standards among Chinese companies. Technically, the companies listed in the US should open their books for US regulators, but Chinese officials often prohibit such access with reference to national security. Opening in 2020. The Chinese Coffee Leash Luckin Coffee overstated the last point for Congress, which took part in foreign companies accountable what that Ordered Chinese companies To give access to US regulators or risk to discard US exchanges.
After many years of negotiations, China agreed to allow us to regulators to consider audit documents in Chinese city Hong KongRaising the threat and soothing investors.
However, the damage has already been caused when Chinese companies listed the United States started studying secondary lists in Hong Kong. Last year Alibaba updated your Hong Kong list To the primary list that allows the Chinese e -commerce company to touch the investor in the mainland Chinese language through the urban connection scheme.
Some investors “moved from an American tick into Hong Kong Biter with a threat to translation,” Rao says.
Hong Kong can win
In mid -April, Goldman Sachs estimated that US institutional investors have shares of about $ 830 billion in Chinese companies that are distributing mainland Chinese, Hong Kong and US markets. About $ 250 billion from this in Chinese Adr.
However, “the stakes of foreigners, especially US owners, decreased compared to where we were five years ago,” said Cameron Chui, a capital strategist for a private bank JPMorgan, during a briefing on Wednesday, when asked about the cost of expenses. “The risk is definitely significantly reduced.”
Rao notes that US investors can still continue trading in Chinese companies, even if they are rejected – it will just be in the less protected OTC market. Tencent, one of the largest technology companies in China, has its main list in Hong Kong, but also trades on the US OTC.
Meanwhile, Chinese companies are already muttering about other options. In an interview with journalists on the sidelines of the Shanghai car dealership. Hong Kong was possibleAlthough he confirmed that the startup focused on the release of the next generation vehicles.
Geely Auto also takes Its in the US that lists the EV Zeekr Private brand, just one year After its New York IPO, to streamline the operations of the Chinese auto giant and increase profitability.
In its mid -April report, Goldman Sachs highlighted 27 Chinese companies that are probably eligible for Hong Kong list (be it a secondary or main list), including the PDD, FUTU trading platform and Fulliance’s digital logistics platform.
But some Chinese companies attract geopolitics to pursue the US list. Chaga, Chinese tea chain raised 411 million dollars In the US IPO, debut on NASDAQ on April 17.
Hong Kong looks like a more attractive – or at least less bad – a place to trade stocks. The main list in the city opens the possibility of mainland Chinese investors who trade stocks. Southern Streams (ie from mainland China in Hong Kong) In recent months has grownAs a mainland Chinese investors in a barrel Ah -bum represented by companies such as Alibaba and Semiconductor international production corporation.
“It is at least wisely have a secondary list in Hong Kong if you are a Chinese company listed by the United States,” Rao says.
The city is experiencing an IPO revival, as mainland Chinese companies now hope to register Global Capital through a “foreign” list. Last November and 4 billion IPO dollars from mideaThe world’s largest manufacturer of home appliances, expelled things; Mixue, a chain of ice cream with more sockets than McDonald’s, moved in March.
Hong Kong is waiting for at least two more IPO blockbusters in the coming months. Catl, Main Battery Supplier for Tesla hopes to raise $ 5 billion In Hong Kong soon. (JPMorgan and Bank of America help in IPO having drew close attention to Congress.) Chinese carmaker Cyry Auto Also prepared For the Hong Kong list to raise $ 1.5 billion.
But Hong Kong is not the perfect replacement for New York. “There is no positive out of this. The liquidity in Hong Kong is not the same as in the US,” he said on Wednesday.
Originally this story was presented on Fortune.com
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2025-05-10 03:00:00
Nicholas Gordon
