- Chinese e-commerce giants have seen more of their shares shift to the Hong Kong market as Beijing failed to impress U.S. regulators, Bloomberg reports.
- Bloomberg saw ~77% of JD.com Inc's (NASDAQ:JD) shares circulating in Hong Kong's clearing and settling system as of April 19, versus 44% at the 2022 beginning.
- The shift highlighted that the U.S. delisting risk remained a lingering concern as investors slashed exposure to American depositary shares to avoid direct regulatory shocks leading to the trading suspensions and liquidation of their stock in the U.S.
- Also Read: SEC Adds Another Chinese Tech Firm To Its Provisional List After Baidu, iQIYI
- Alibaba Group Holding Ltd's (NYSE:BABA) Hong Kong-listed share portion rose to 56% from 53%.
- The portion of Hong Kong-listed shares at JD.com and Alibaba had already almost doubled in 2021.
- Most of 2022's conversions at Alibaba and JD.com occurred in April, despite China allowing access to auditing reports for U.S. regulators. Still, the odds of delisting stood at 50% as per a fund manager, depending on how China will grant U.S. audit access and to what companies.
- The Hang Seng Tech Index has dropped 27% in Hong Kong in 2022, with the risk of abandoned U.S. listings remaining a key overhang for the sector.
- Price Action: BABA shares traded higher by 0.06% at $93.56 in the premarket on the last check Wednesday.
