Chinese stocks are falling hard on Friday on fears of delisting due to the U.S. Securities and Exchange Commission (SEC) adopting standards set forth by former President Donald Trump.
The law from the previous administration makes it so that Chinese stocks have to meet U.S. auditing standards if they want to continue to be listed in the country. Chinese companies that are unable to do this will be delisted from U.S. stock exchanges.
This has investors wary about three Chinese stocks in particular. Let’s take a look at them and how the market is treating them today.
- Baidu (NASDAQ:BIDU) — Shares of BIDU stock are down 11.2% alongside today’s news. It’s also worth noting that some 50 million shares have changed hands. That’s a mighty jump next to its daily average trading volume of 11.4 million shares.
- Vipshop (NYSE:VIPS) — VIPS stock is next up on the list with shares falling 11.3% as of Friday afternoon. The company also has seen more than 74 million shares trade today. For comparison, its daily average trading volume is roughly 8.4 million shares.
- Tencent Music Entertainment Group (NYSE:TME) — TME stock closes out the list of Chinese stocks taking a beat with shares dropping 16.7%. It’s also seeing heavy trading with over 163 million shares changing hands. To put that in perspective, its daily average trading volume is closer to 15.5 million shares.
Adding to the recent SEC news, it looks like Goldman Sachs (NYSE:GS) is losing faith in the above-mentioned Chinese stocks as well. Recent reports claim that the investment banking company is selling off large blocks of BIDU stock, VIPS stock, and TME stock today.
Other Chinese stocks are also getting hit hard by the SEC changes and other concerns over trade with China.
That’s resulted in many shares of Chinese stock dipping lower recently, even if those companies aren’t likely to be delisted. Some examples include Nio (NYSE:NIO), Xpeng (NYSE:XPEV), Li Auto (NASDAQ:LI), and more. Investors that want to catch up on the latest Chinese stocks news can check out the following content from InvestorPlace.com.
More Chinese Stocks News
- NIO Stock: Production Halt Sends EV Maker Nio Reeling Today
- Chinese EV Stocks: Why NIO, LI and XPEV Stocks Are Crashing
- Delisting Chinese Stocks? Why NIO, XPEV, LI, VIPS, IQ, TME Stocks Are Down
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.