China suffers a loss on the Hong Kong exchange. Weibo lost one-third of its value shares.
US-China trade war affects US stock exchange. Companies listed in the US stock exchange suffer losses. Many companies switched from the US stock exchange and the companies listed in Hong Kong. They had to take the step to save their loss.
President Trump accused China of unfair trade practices. He also added the allegation of Intellectual property theft.
This trade war has reached the extent of the cold war so, China and US, both companies, imposed regulation policies on each other.
US securities and exchange commission approved to list out Chinese company’s regulatory authorities empowering rules on approval.
Chinese companies have to share the information requested to remove the approval. They have to share the information requested.
The Companies have to follow the rule of regulatory authorities empowering rules for 3-year term conditions. The refusal for the condition of sharing information for 3 years will ensure that they get listed out.
Chinese companies have lost their shares in the US exchange as well as in the Hong Kong stock exchange. They had to switch to the Hong Kong stock exchange as rules imposed.
WORKING OF SEC
- The public company accounting oversight board cannot inspect completely to identify the registrant.
- Registrant’s auditing firms in foreign jurisdictions.
- The approved rules will allow the investors to identify registrants with the help of the public company accounting oversight board.
- Firstly SEC will need foreign issuers.
- Secondly They added the extent of foreign government ownership could be disclosed by foreign issuers and they provided all the information of their work on the US stock exchange and Hong Kong stock exchange.
- Restriction to China for foreign listing.
- Beijing approves the restriction of China from the foreign listing.
- The Chinese companies with Didi are operating from an offshore company.
- They have made this decision to avoid the regulation imposed on them in the US stock exchange and Hong Kong stock exchange.
LOSSES OF CHINESE COMPANIES
The Chinese companies have decided to buybacks shares from the investors, so they are making this decision as a backup to ensure they overcome the downfall as they are listed out of the US stock exchange.
Chinese companies are making decisions to turn their companies into private companies.
The investor may exchange their American stock depository receipt and They will take these measures for foreign stock. Shareholders will decide the price and the procedure of share transfer.
They are required to get listed in more than one stock exchange to perform share transfers.
US bank bundled share of foreign companies in ADR.
The foreign companies listed in the US stock exchange have to face the problem of US banks. Bundles traded in dollars. Bundles being traded as stock is also acknowledged.
Foreign companies are gaining access to US capital.
The Chinese company’s shares will be in limbo so, They do not buy back shares and do not get listed anywhere. Investors cannot share the trade.
Investors are still holding the business. It is possible that they can continue to carry the work and they are still waiting for the listing.
Their failure to get listed will make them decide to sell the shares over the counter. They will have to bear the loss and sell the stake at a far lesser value.
IT TURNED INTO COLD WAR
Twitter and China are relevantly equivalent to each other. Since the year 2000, Weibo got listed in Nasdaq. In addition, This company is also similar to the company uber and this trade has turned into a cold war.
The companies are sanctioning each other so the Restrictions are being imposed on companies and by them. High import tariffs are also acknowledged and the regulation policies are on each other.
China has stopped the approval of US-based social media platforms like Twitter and Facebook.
It has stopped its launch.