![]() Van Hollen saying in a statement to CNN that the SEC should be looking into the situation with Didi in particular. ![]() And we've had Republicans like Marco Rubio asking these questions as well. One of the people asking those questions is now not a Chinese regulator but a US regulator- or a US Congressman, I should say- Chris Van Hollen, a senator from Maryland. And there are a lot of questions about what Didi's management knew about the Chinese dissatisfaction, how it was going to affect the company. So that brings us to Didi, which, of course, just listed in the US on July- on June 30. So are Chinese regulators going to change that for existing listings, ones that are already public? Are they going to change it for new ones? We don't exactly know. But Chinese companies have gotten around that through various other types of legal entities over the past several years, Didi and many of the other- basically all of the other US-listed companies that are based in China included. The official line is that we cannot have- there cannot be a large foreign ownership of Chinese-based entities. We know Chinese regulators, of course, have pulled the Didi app off of Chinese app stores and platforms, right? And we know that there is some dissatisfaction on the part of the Chinese authorities. On the Chinese side, we're not exactly sure what is going to happen. That's something that bipartisan members of Congress have pushed for. JULIE HYMAN: Right, on the US side, there has been the suggestion over the past few years that Chinese firms that list in the US be held to US auditing standards. But the way that these businesses are regulated, both by US and Chinese regulators, seems almost certain to be changing in the coming months and years. I know Jared caught our attention with just sort of his personal view that maybe these companies won't be listed on the market in some years time. And Julie, it continues- or we continue to see new developments in the regulatory future for these businesses. Shares of Baidu, JD.com, Alibaba, they're all under pressure this morning, down more than 2%. Shares this morning of Didi are off about 5% and the stock now trading under $12 per share, so down more than 30% from where the company was priced when it went public.Īnd they are not the only China-based company that trades in the US that's seen their stock under pressure. Company came public one week ago today in an IPO where it raised about $4 billion. And that's what's happening with China-based US-listed companies. MYLES UDLAND: Let's talk a little bit more about one of the stories that's underneath the surface of the index sell-off and has really been a leading indicator here. Julie Hyman, Brian Sozzi and Myles Udland discuss what the move means for the Chinese tech sector going forward. continued to extend declines following China’s crackdown on ride-hailing app Didi last weekend. Medical data platform LinkDoc Technology shelved its IPO plans on Thursday, becoming the first company to axe its debut after China announced stricter supervision on overseas listings, Bloomberg reports.On Thursday, Chinese companies listed in the U.S. LinkDoc was expected to raise up to $211 million on the Nasdaq. It was the second-largest Chinese IPO in the U.S. pipeline among firms that had already filed to list, according to Refinitiv data. The Beijing-based company pulled the listing because of Beijing’s regulatory crackdown, says Reuters. ![]() LinkDoc’s delay was the first sign that Beijing’s clampdown on Chinese companies’ overseas listings is stalling the parade of firms readying IPOs in the U.S. Last week, the Cyberspace Administration of China (CAC) announced an investigation into Didi over data and national security concerns, two days after the ride-hailing giant raised $4.4 billion in an IPO on the New York Stock Exchange (NYSE). The CAC announced on Monday two more probes, into Full Truck Alliance, known as China’s “ Uber for trucks,” and job recruitment platform Boss Zhipin, citing similar issues. The two companies went public in the U.S.
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