Shares of several Chinese stocks including Alibaba Group Holding Ltd (NYSE:BABA), Baidu Inc (NASDAQ:BIDU) and Nio Inc (NYSE:NIO) are trading lower Tuesday amid growing COVID-19 concerns in China, with over 13,000 daily cases reported in Shanghai. The surge in cases has led US companies in China to reduce 2022 projections. Chinese stocks are also selling off following yesterday's strength which came amid a potential rule change that would allow Chinese companies to share sensitive data with U.S. regulators.
The China Securities Regulatory Commission on Saturday proposed revisions to rules which previously allowed only Chinese regulators to conduct on-site audit inspections of Chinese companies listed overseas. The unrevised rules forbid Chinese firms from sharing sensitive data and financial information with overseas regulators.
