Sales of Chinese groups ’shares in the US rose to a record high despite fears of being expelled from the country’s stock exchanges.
April 26, 2021 05:15 GMT
Some Chinese companies are running the risk of being delisted from US stock exchanges under a new law signed by the previous administration.
Money raised by Chinese groups in US stock markets Shave 440% In the first months of 2021, despite trade tensions between the two countries and Risk Expulsion of Chinese companies from US stock exchanges.
According to data from Dealogic platform he cited Financial timesChinese companies have raised a record $ 11 billion this year on the New York Stock Exchange and Nasdaq through initial public offerings, tracking stock sales and convertible bond issuances.
The big listings included an initial public offering of $ 1.4 billion from electronic cigarette maker RLX Technology and $ 947 million from software company Tuya, among other Asian giants.
This year, the New York Stock Exchange removed three Chinese state telecom companies from the list due to their alleged ties to the Chinese military. Other companies can also undergo this practice after the U.S. Securities and Exchange Commission (SEC) accreditation in March. Foreign Corporate Liability Law, what was Agreed By the Trump administration last year, and threatening to expel foreign companies from US stock exchanges if they fail to meet US auditing standards.
“Investors are focusing on growth margins and profitability outlook here and now, and they will address regulatory changes or. Geopolitical events when they materialize,” Craig Cobain, Co-President of Global Capital Markets in the Asia-Pacific region of Bank of America told the newspaper.
“it is expected that The Chinese economy will grow strongly in 2021. If we add to that the beginning From a very strong group of companies, and of course there are investors eager to find ways to invest in these names. “