Why investors are turning positive for US-traded Chinese companies
Beijing’s new proposal to allow US-listed companies to use an external auditor eases tensions with Washington, while dual primary listings in Hong Kong provide better trading and liquidity conditions.
AbJimroe
April 19, 2022
Share prices for US-listed Chinese stocks have whipsawed this year, as investors navigate through a spinning regulation cycle that often feels like a roulette wheel.
Back in February, the Cyberspace Administration of China CAC reiterated that companies handling personal data for more than a million users would need to seek state permission before raising capital overseas. In March, the US Securities and Exchange Commission SEC signaled regulatory retaliation by publishing a provisional list of Chinese companies using a financial auditor not recognised by the Public Company Accounting Oversight Board PCAOB.
But a turning point appears to have emerged. Earlier this month, China Securities...
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