Tuya Seeks Hong Kong IPO to Hedge U.S. Delisting Risk, But Investors Are Wary

With the possibility of being forced to delist from the U.S. market by the SEC, Tuya is primarily seeking a safe harbor and only aims to raise a conservative HK$140 million Key takeaways: Tuya’s failure to turn a profit and a lackluster performance of the overall share market in Hong Kong has dampened investor interest The first-quarter loss of the internet of things company widened by 35.6% year-on-year as a result of rising R&D and operational costs By Fai Pui As the diplomatic and economic showdown between Beijing and Washington…

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Investors Unfazed as TAL Education Added to List of Chinese Firms at Risk of Delisting

The education company’s shares fell 1.6% after it was cited by the U.S. securities regulator for non-compliance with the Holding Foreign Companies Accountable Act Key Takeaways: The U.S. Securities and Exchange Commission has added TAL Education and two other firms to its list of Chinese companies that could be delisted The SEC and its Chinese counterpart have been silent for more than a month on their talks for a key information-sharing deal to end the delisting threat By Doug Young And the list goes on. After a frenzied period where…

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FAST NEWS: Hutchmed Receives Additional Holdings from U.S. Fund

The latest: The Capital Group Companies, Inc., a U.S.-based fund disclosed it purchased 1.285 million shares in Hutchmed (China) Ltd. (HCM.US; 0013.HK) for HK$22.14 million ($2.84 million), raising its stake from 8.93% to 9.08%, according to a Hong Kong Stock Exchange filing. Looking up: Although Hutchmed’s U.S.-listed shares are at risk of delisting, its Hong Kong shares are still being purchased by a U.S.-based fund, reflecting this shareholder’s confidence in the company’s prospects. Take Note: The average price per share for The Capital Group’s increased stake in Hutchmed is HK$17.236.…

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FAST NEWS: Luckin Coffee Denies Hong Kong Listing Plan

The latest: Chinese coffee chain Luckin Coffee Inc. (LKNCY.US) said in a statement Monday that it is not seeking a Hong Kong listing at this time, refuting a media report that it was considering such a plan. It added it remains committed to U.S. capital markets where its stock is currently traded over-the-counter (OTC). Looking up: The company said it will continue to monitor capital market developments and evaluate all avenues to deliver value to its stakeholders, implying it has not completely ruled out a potential future listing in Hong Kong.…

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FAST NEWS: Qudian Regains Compliance With New York Listing Rules

The latest: Online lender Qudian Inc. (QD.US) said on Thursday it has regained compliance with New York Stock Exchange listing rules, after its average closing price for the last 30 trading days rose above the $1 mark. The price had previously traded below that level on a similar basis, leading the company to warn in February it was in danger of delisting. Looking Up: The return to compliance means Qudian won’t need to take other steps to avoid delisting. The most typical step companies use in such situations is a…

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FAST NEWS: Property Platform KE Holdings to Make Second Primary Listing in Hong Kong

The latest: Chinese real estate platform KE Holdings Inc. (BEKE.US; 2423.HK) announced Thursday it will make a second primary listing for its Class A ordinary shares on the Hong Kong Stock Exchange by way of introduction, with trading set to start May 11. At the same time, it said it would continue to maintain its older primary listing on the New York Stock Exchange. Looking up: The company’s move comes as the U.S. securities regulator is requiring that U.S.-listed Chinese companies share their audit records. It is threatening to forcibly delist…

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DiDi’s Delisting Plan Just the Start of a Tough Road Ahead

The company often called China’s Uber will convene a shareholder meeting on May 23 to vote on a plan to delist from New York less than a year after its IPO Key Takeaways: DiDi shareholders are likely to approve a plan to delist the company from New York since major investors who hold more than 45% of its shares are likely to vote in favor After an exit, the company must still find ways to comply with China’s Cybersecurity Law and find a way to become profitable to survive over…

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FAST NEWS: Daqo New Energy Says It May Be Forced to Delist in 2024

The latest: After being added to a growing list of companies facing possible forced delisting from U.S. stock exchanges, polysilicon maker Daqo New Energy Corp. (DQ.US) responded on Wednesday by saying it will continue to comply with applicable laws and regulations in both China and the U.S. Looking up: The company said it is actively exploring possible solutions to best protect the interest of its stakeholders, without being more specific. One alternative could be a public listing in Hong Kong as some other U.S.-listed Chinese stocks have done, taking advantage of a friendlier…

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FAST NEWS: Baidu Joins List of U.S.-Traded Chinese Stocks in Danger of Delisting

The latest: China’s dominant search engine Baidu Inc. (BIDU.US; 9888.HK) on Wednesday was added to a growing list of companies facing the risk of forced delisting from U.S. stock exchanges. Looking Up: Baidu wasn’t the only company added to the list. Its video affiliate iQiyi (IQ.US) and online brokerage Futu (FUTU.US) were also among five companies added to the U.S. Securities and Exchange Commission’s (SEC) updated list. Take Note: Baidu is the largest Chinese company added to the list to date, with a market value of around $50 billion. Before…

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FAST NEWS: Weibo Added to U.S. List for Potential Forced Delisting

The latest: Weibo Corp. (WB.US; 9898.HK) was added to a U.S. government list of New York-traded Chinese companies that could face possible delisting for failing to comply with a U.S. law passed in late 2020. The company, considered China’s version of Twitter, joined five others published on an initial list two weeks ago. Looking Up: Weibo’s inclusion on the list didn’t come as a major surprise, as all of the nearly 300 Chinese companies now traded in New York face a similar delisting risk if they fail to comply with…

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