CHINA-ECONOMY: CHINESE STOCK VALUES SLUMP IN US STOCK EXCHANGES
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A Bloomberg report (March 14) said that Chinese stocks in the U.S. which were enjoying an
unprecedented boom just a year ago have plummeted 72% -- almost matching losses during
the 2008 financial crisis. Alibaba Group Holding Ltd. alone has lost about $522 billions of
value, the biggest wipe out of shareholder wealth worldwide. Tencent -- which was close to a
$1 trillion market value last year -- slumped almost 10% on Monday, the most since 2011. The
company’s shares are now worth $407 billion. In the week ending March 14, the SEC named
its first batch of Chinese stocks as part of a crackdown on foreign firms that refuse to open their
books to U.S. regulators. The newly identified firms could be subject to delisting from U.S.
exchanges if they fail to comply with auditing requirements for three consecutive years. With
U.S. officials saying Russia has asked China for military assistance for its war in Ukraine,
traders worry that Beijing’s potential overture toward Putin could bring global backlash against
Chinese firms and even sanctions. Fears of being delisted on US stock exchanges and
imposition of sanctions because of Xi Jinping's support to Russian President Putin are also
discouraging investors.
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