Chinese Online Grocery Seller Dada Welcomes 'Better Auditing And Regulation,' As Company Starts Trading At Nasdaq

Chinese online grocery seller Dada Nexus Ltd. DADA CEO said the company welcomed "better auditing and regulation," as it began trading at the Nasdaq Stock Market on Friday.

US-China Tensions Temporary, CEO Says

"We particularly welcome better auditing and regulation," Philip Kuai said, according to a CNBC translation from Mandarin.

"Only when your entire environment is as healthy as possible will the interests of everyone — investors, users, etc. — be protected, and the market develops in a healthy way."

Kuai said the tensions between the United States and China are temporary, CNBC reported.

US Lawmakers Pose Delisting Threat

Dada has seen a surge in business during the novel coronavirus (COVID-19) pandemic in China, as demand for home delivery of goods increased.

The company raised $320 million in its initial public offering last week at $16 per American Depositary Share and is valued at $3.5 billion post-IPO.

Dada listed at Nasdaq at a time when the U.S. Senate has passed a bill that will require Chinese companies to establish that they aren't owned or controlled by the Beijing government, or otherwise get delisted.

Major Chinese companies listed in the U.S., including Dada investor JD.com Inc. JD that aren't already listed on a secondary market abroad, have been considering having a backup, the Financial Times reported.

Price Action

Dada shares closed slightly lower at $15.99 on the first day of trading on Friday, and further slipped at $15.87 in the after-hours session.