Caixin (March 21) reported that following the U.S. Securities and Exchange Commission (SEC)
on March 8 naming five Chinese companies that could eventually be delisted from U.S.
exchanges because American regulators can’t get access to their audit work papers, two days
later U.S.-traded Chinese stocks began to fall in a plunge that lasted three straight trading days.
During those three days, the Nasdaq Golden Dragon China Index, which tracks more than 90
Chinese stocks traded in the U.S., fell more than 10% each day. The sell-off spread beyond
U.S. borders, with the Hang Seng China Enterprises Index, which tracks Chinese mainland
companies listed in Hong Kong, plummeting 15.6% from March 11 to March 15 and the
mainland benchmark CSI 300 Index shedding 7.5% in the latter two days.
(Comment: The fall in Chinese stocks reflects the uncertainty caused also by the Ukraine crisis
and threats of sanctions against China.)
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