US delisting threat against Alibaba ‘to further damage international status of US capital market’
File photo shows Alibaba employees entering the company in Hangzhou, Zhejiang province. Photo: Xinhua
The U.S. securities regulator’s latest move to put Alibaba Group and three other U.S.-listed Chinese companies on the list of companies subject to delisting is a politically-oriented threat that will have an effect deterrent to businesses from other countries and regions and will further damage the international status of the U.S. capital market, a Chinese expert said on Saturday.
The U.S. Securities and Exchange Commission (SEC) on Friday added the largest U.S.-listed Chinese company, Alibaba, and three other Chinese companies to a growing list of companies likely to be removed, The Wall reported. StreetJournal.
At this point, a total of 159 of more than 260 Chinese companies listed on the U.S. market have been listed by the U.S. SEC, according to Chinese media ce.cn.
The United States’ continued threats against Chinese companies listed in the United States will have chilling effects on companies in other countries and regions, said Mei Xinyu, a researcher at the China Academy of International Trade and Economic Cooperation under the Chinese Academy of International Trade and Economic Cooperation. from the Ministry of Commerce, to the Global Times on Saturday.
“It will further damage the international status of the US capital market,” Mei said, adding that if the US uses political means to force high-quality listings out of the US market, global capital seeking profit will be forced out of the market. WE.
Alibaba’s stock price fell 11% on Friday. As of press time, the company, which plans to release the second-quarter earnings report next Thursday, did not respond to the latest action from the US SEC when approached by the Global Times.
The threat from the US SEC will have a short-term impact on the stock price of Alibaba and other companies, but it is these companies’ earnings growth and China’s rising status in the global economic landscape that determine stock prices over the long term. price of these companies, Mei said.
Alibaba announced on Tuesday that it will upgrade its secondary listing on the Hong Kong Stock Exchange (HKSE) to a primary listing under a new exchange procedure that allows for dual primary listing.
While continued US pressure for financial decoupling from China will certainly impact Chinese companies, as Chinese companies have found other listing options, forcing them out of the US market can only hurt the attractiveness of the US market for international capital, experts said.
China will continue to actively support the overseas listing of eligible companies, the China Securities Regulatory Commission reiterated at the 2022 mid-year work conference on system supervision held on Friday.