Pinduoduo And Other US Listed Chinese Tech Companies Abort Dual Listing Options

  • Major U.S.-listed Chinese companies, including Pinduoduo Inc PDD and Full Truck Alliance Co YMM, have put discussions about a potential Hong Kong listing on hold.
  • Recently U.S. accounting watchdog Public Company Accounting Oversight Board (PCAOB) said it had full access to inspect and investigate firms in China for the first time, Reuters reports.
  • Also Read: Alibaba And Other Chinese Stocks Might Get Breather As US-China Reach Regulatory Agreement
  • The statement removed the risk of around 200 Chinese companies getting kicked off U.S. stock exchanges amid rocky relations between the largest economies.
  • PCAOB said it exercised sole discretion to select firms for audit and had selected two, KPMG Huazhen LLP in China and PricewaterhouseCoopers in Hong Kong.
  • PCAOB staff identified "numerous potential deficiencies" in their inspection work, PCAOB Chair Erica Williams said, saying the inspection reports will be finalized and made public next year.
  • In a statement, he said: "Chinese authorities will need to give PCAOB "full access for inspections and investigations in 2023 and beyond."
  • Companies like Alibaba Group Holding Limited BABA, and JD.Com, Inc JD, have moved to also list in Hong Kong to hedge the risk of potential delisting in the U.S. due to political disputes with China.
  • Price Action: PDD shares traded higher by 0.84% at $82.10 in the premarket on the last check Thursday.
  • Photo: Eakrin Rasadonyindee and Visuals6x by Shutterstock
Market News and Data brought to you by Benzinga APIs
Posted In: GovernmentNewsRegulationsTop StoriesTechMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!