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China seeks to avoid US delisting
17-08-2022 14:04
China seeks to avoid US delisting
China seeks to avoid US delisting

Beijing is now looking for ways to avoid the US delisting of Chinese companies. The Chinese authorities are ready to make a concession in order to keep Chinese firms on US exchanges. In an attempt to stop US regulators from delisting hundreds of firms, Beijing is preparing a special three-tier system. According to it, Chinese companies will be sorted into three categories based on the sensitivity of the data they will have to disclose during audits. The first group includes companies with non-sensitive data. Firms with sensitive data belong to the second group, while the third group consists of the companies with the so-called secretive data. China hopes that only the last category of firms will have to delist. The rest will need to restructure their operation which implies disclosing information to a third party. This decision is a significant concession made by China. Otherwise, US-listed Chinese companies with a combined market value of $1.3 trillion could be kicked off the US stock market. Besides, delisting would further undermine business relationships between the two countries.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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