U.S. Gives High Marks to First Inspections of New York-listed Chinese Companies

The U.S. securities regulator’s accounting arm said it obtained ‘complete access’ to companies it targeted under a landmark information-sharing agreement reached in August Key Takeaways: The PCAOB gave a positive review of its trial inspections of two China-based accountants under a landmark U.S.-China information sharing deal The positive assessment eases the likelihood of forced de-listings for the group of more than 200 companies By Doug Young Perhaps it got lost in the flood of news about China’s sudden relaxation of its “zero Covid” policy. Or perhaps it was overshadowed by…

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FAST NEWS: Hotel Operator Atour Jumps 17% in New York Trading Debut

The latest: Shares of Chinese hotel operator Atour Lifestyle Holdings Ltd. (ATAT.US) surged as much as 55% to a high of $17.05 in their trading debut on the Nasdaq last Friday, after the company sold shares at an IPO price of $11. Looking up: Atour’s underwriters included BofA Securities and Citigroup, making it the first successful U.S. IPO for a Chinese stock underwritten by major western investment banks in over a year. Take Note: The company raised $52 million after pricing 4.8 million American depositary shares (ADS) at the bottom…

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FAST NEWS: PCAOB Completes Chinese Stock Audits Ahead of Schedule in Hong Kong

The latest: Officials from the U.S. Public Company Accounting Oversight Board (PCAOB) in Hong Kong have completed their first on-site audits of Chinese stocks ahead of schedule and may submit preliminary reports to the U.S. securities regulator in the coming weeks, according to a report from Bloomberg last Friday. Looking up: Bloomberg indicated that dozens of PCAOB inspectors may have left Hong Kong over the past weekend. Their audit work of U.S.-listed Chinese companies was originally scheduled to continue until mid-November, but its early completion may reflect that things went…

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Cloopen: A Clean Cloud, or Still Under Stormy Skies?

Cloud services provider’s investigation confirms revenue inflation last year, while separate, but similar, investigation by retailer Miniso finds no evidence of misleading claims involving its franchise model Key Takeaways: An internal investigation by cloud services provider Cloopen found the company inflated its revenue by about 5% in last year’s second and third quarters The new China-U.S. information-sharing agreement could help restore investor confidence in such U.S.-listed Chinese companies By Doug Young A couple of new announcements involving internal investigations results for two U.S.-listed Chinese companies are showing why we need…

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FAST NEWS: Tencent Music to Make Second Listing in Hong Kong

The latest: New York-listed Tencent Music Entertainment Group (TME.US; 1698.HK) announced Thursday it will make a second listing in Hong Kong using a method called “by way of introduction,” which does not involve issuing new shares. Trading for the new listing is expected to begin next Wednesday. Looking up: Earlier this year, Tencent Music was placed on a growing list of Chinese companies that could be forcibly delisted in the U.S. for failing to comply with U.S. law. Thus, its new Hong Kong listing will help it to maintains its status as…

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U.S.-China Audit Deal Won’t Slow Hong Kong Dual Listing Train, Analysts Say

The landmark information-sharing agreement won’t dispel concerns over delistings of Chinese firms from New York until the deal is smoothly implemented Key Takeaways: Despite a landmark U.S.-China information-sharing agreement, some predict dual listings in New York and Hong Kong will remain the preferred choice for Chinese stocks UBS estimates Hong Kong Stock Exchange trading volume could rise up to 25% if all U.S.-traded Chinese stocks delist from New York and move to Hong Kong By Ken Lo The new information-sharing agreement between U.S. and China stock regulators was a welcome…

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China, U.S. Stock Regulators Hope New Agreement Will Succeed Where Others Haven’t

New information-sharing deal will give U.S. accounting regulator access to audit records for New York-listed Chinese firms. But will it really get what it wants? Key Takeaways: Having reached a tentative deal that could remove the delisting threat for U.S.-traded Chinese stocks, China and the U.S. will conduct a trial period through the end of this year Different interpretations on reciprocity and cooperation could become stumbling blocks that ultimately derail the deal – following the failure of two previous agreements By Doug Young Will the third time be the charm?…

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Wuxin Tech Hopes IoT Focus Will Divert Attention from Chinese Roots in U.S. IPO Bid

The maker of chips used in internet-of-things devices is seeking a U.S. listing just as Chinese state-owned giants are pulling from the market amid China-U.S. tensions Key Takeaways: Wuxin Technology is looking to raise up to $39 million in a New York IPO, joining a small group of Chinese companies still looking to tap U.S. markets despite frosty China-U.S. relations The company is in a sector strongly supported by Beijing, but is also vulnerable to risk from China’s broader efforts to tighten regulation of tech companies By Warren Yang Add…

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Kingsoft Cloud Joins Chinese Companies Pivoting To Hong Kong as Delisting Risk Grows

Kingsoft Cloud seeks to list in Hong Kong after being placed on a long list of Chinese companies that can be delisted in the U.S. under a law that requires the sharing of audit data Key Takeaway: Kingsoft Cloud has joined more than 100 companies that can be delisted in the U.S. amid an impasse between Washington and Beijing over a U.S. law that requires Chinese companies listed in the country to share audit records The company’s stock has lost more than 95% of its value from its peak, hit…

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Alibaba Eyes Hong Kong Primary Listing as Hedge to U.S. Delisting Threat

Primary listing in Hong Kong in addition to its New York listing could also make the e-commerce giant’s shares accessible to mainland China investors Key Takeaways: Alibaba said it expects the upgrade of its secondary Hong Kong listing to primary listing status to be complete by the end of 2022 The SEC has placed Alibaba on a list of Chinese firms facing potential delisting as the deadline nears for U.S.-listed Chinese firms to comply with American audit rules By Ken Lo Alibaba Group Holding Ltd. (BABA.US; 9988.HK) applied for a…

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