Shanghai, China-based e-commerce platform operator Pinduoduo Inc. (PDD) operates a mobile platform that provides value-for-money merchandise and interactive shopping options. PDD’s shares have slumped 61.8% in price over the past year and 42.7% over the past six months amid China’s tightening regulatory policies and deteriorating growth with new coronavirus outbreaks impacting consumer spending. PDD has faced investor pessimism due to China’s regulatory crackdown on the nation’s internet giants. Regulators have introduced a series of legislation. And GFM Asset Management’s Tariq Dennison expects the crackdown to last “at least another 20 or 30 years.”
Furthermore, adding to the investors’ worries is the deteriorating China-U.S. relationship. The U.S. government has moved toward delisting Chinese companies from U.S. stock exchanges for non-compliance with Washington’s disclosure requirements, with the SEC mandating foreign companies to open their books to U.S. scrutiny. PDD shares retreated on the news.
