U.S.- listed China shares are tumbling again with Alibaba down 5%
Alibaba will report its second quarter results on Thursday, as it faces economic headwinds from China and slower sales growth.
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As investors review their positions in light of renewed delisting fears, shares of Chinese stocks that are listed in the U.S. have fallen Monday.
This week the Securities and Exchange Commission identified five U.S.-listed American depositary receipts of ChineseCompanies that did not comply with this directive were penalized. Holding Foreign Companies Accountable ActSome Chinese stocks fell as a result. ADRs represent shares of companies outside the United States that trade on U.S. Exchanges.
If regulators are unable to review audits of companies for at least three years, the SEC can delist or ban them from trading on U.S. stock exchanges. Yum China, BeiGene Zai Lab, which recently filed annual reports with the agency, made the list.
Stocks with large names include Alibaba, Baidu JD.comIn premarket trade Monday, they were down respectively 5% and 7%. Alibaba dropped 12% last week, and is now down 27% since the beginning of this year. Baidu plummeted 14% last week and has fallen 20% so far in the year.
It Chinese marketOverall, the number of people using Covid-19 in Shenzhen is dropping where many of the country’s technology giants operate. Foxconn is one AppleApple’s largest suppliers shut down operations as a result. Apple shares were trading at a nearly 2 percent loss in premarket on Monday.
After reading several news sources, some investors have begun to consider the potential Chinese involvement in the conflict in Ukraine. including the Financial TimesAccording to a report by Reuters, U.S. officials suggested that Russia might have requested military assistance from China.