NYSE VC and Chief Commercial Officer John Tuttle expects the number of Chinese companies listed in the U.S. to remain the same or grow amid pressure from the threat of delisting, Barron's reports.
Investment in China and the outlook for the world's second-largest economy are in sharp focus at the World Economic Forum. U.S.-listed Chinese tech stocks have lost more than 20% of their value since the last meet in January 2020.
Chinese stocks like Alibaba Group Holding Limited BABA, Baidu, Inc BIDU, Tencent Holding Ltd TCEHY, and others suffered colossal losses in market value due to the domestic tech crackdown.
Additionally, U.S. SEC's move to delist companies not compliant with its accounting standards further wreaked havoc on the already battered stocks.
Tuttle believes three things need to be clarified for investors, which will likely get resolved in the near to medium term.
First is the role Chinese regulators, like its cybersecurity watchdogs, will play in gatekeeping Chinese companies seeking to access international capital.
Second is the SEC having clarity around disclosure from variable interest entities or the clouded corporate structures by which companies like Alibaba are listed publicly in the U.S.
The third is the dialogue between Chinese regulators, the SEC, and the Public Company Accounting Oversight Board over cooperation in the inspection of Chinese auditors.
Price Action: BABA shares traded higher by 0.08% at $86.86 on the last check Monday.
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