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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FAST NEWS: Miniso Raises Only $72 Million With Conservative IPO Pricing

The latest: Miniso Group Holding Ltd. (MNSO.US), a Chinese retailer plans a secondary share listing in Hong Kong on July 13 to complement its existing U.S. listing, announced Wednesday it has priced its Hong Kong shares at HK$13.80, about 37.5% below the maximum offering price of HK$22.1, raising about HK$567 million ($72 million). Looking up: Miniso’s lower offering price in Hong Kong, coupled with what it’s calling its “dual primary listing” status, will allow it to be traded on the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs, making those…

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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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The Growing Legal Risks of ESG

Companies that issue environmental, social and governance materials are under growing scrutiny from regulators and shareholders for false or misleading statements By George Boychuk ESG investing involves the analysis of environmental, social, and governance (ESG) factors when making investment decisions. Such investment has gained increasing attention from fund managers in recent years, leading to rapid growth in ESG-focused mutual funds and exchange traded funds. That, in turn, has led businesses across a range of industries to promote and try to capitalize on their ESG credentials. 

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FAST NEWS: U.S. Warns of ‘Significant Issues,’ ‘Time Running Out’ to Reach Securities Deal With China

The latest: Despite recent progress in negotiations for an information-sharing agreement between U.S. and Chinese securities regulators, “significant issues remain and time is quickly running out” to reach such an agreement, a U.S. Securities and Exchange Commission (SEC) official said. Looking Up: Recent talks with the China Securities Regulatory Commission (CSRC) have been “productive” and “constructive,” Y.J. Fischer, director of the SEC’s Office of International Affairs, said in remarks published online on Tuesday. Take Note: Fischer warned that even if an agreement is reached, more time will be needed to…

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FAST NEWS: Are They or Aren’t They? Conflicting Word on U.S. Securities Regulators in Beijing

The latest: Reuters reported on Friday that U.S. securities officials were in Beijing for discussions on an information-sharing agreement with their Chinese counterparts. But later the U.S. Public Company Accounting Oversight Board (PCAOB) denied any of its officials were in Beijing. Looking Up: China has issued a steady stream of signals indicating it wants to allow its companies to keep listing in the New York. Thus, the latest Reuters report, whose sources were anonymous, most likely came from Chinese sources, in the latest positive signal that China wants to reach…

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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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