China signals support for the stocks trading in the U.S.
The Chinese government supports the listing of companies overseas and said its crackdown on technology companies should end soon the state media report said.
Shares of Chinese companies listed publicly in the U.S. surged as China signaled support for the stocks.according to WSJ
Regulators from both countries are progressing toward a cooperation plan on U.S.-listed Chinese stocks, according to Chinese state media.
- Alibaba jumped 36.7%, JD.com added 39.4% and Pinduoduo rallied 56%
The move comes as American depository receipts of Chinese companies have been down recently amid regulatory and delisting fears.
- ADRs are shares of non-U.S. firms traded on U.S. exchanges.
*Bloomberg Chart on China’a stock amid regulation crackdown
The Nasdaq Golden Dragon China index,
which tracks the performance of U.S.-listed Chinese stocks, indicated that in total china’s stocks were down 38.8% in 2022, and 69.2% in the past 12 months.
The Securities and Exchange Commission last week named five U.S.-listed ADRs of Chinese companies that failed to comply with the Holding Foreign Companies Accountable Act.
The act allows the SEC to delist and even ban companies from listing on U.S. exchanges if regulators cannot review company audits for three consecutive years.
