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.…

Read More »

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. 

Read More »

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…

Read More »

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…

Read More »

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…

Read More »

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…

Read More »

FAST NEWS: Zhihu Named for U.S. Delisting Risk on Eve of Hong Kong Debut

The latest: U.S.-listed online Q&A platform Zhihu Inc. (ZH.US; 2390.HK) on Thursday was placed on a growing list of Chinese companies that could be forcibly delisted for failing to comply with U.S. law, along with 16 other Chinese companies including U.S.- and Hong Kong-listed Li Auto Inc. (LI.US; 2015.HK). The U.S. Securities and Exchange Commission (SEC) took the action on the eve of the trading debut for a second listing of Zhihu shares in Hong Kong. Looking up: Zhihu is making the second primary listing in Hong Kong alongside its…

Read More »

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…

Read More »

FAST NEWS: SEC Doubles Number of Chinese Companies at Risk of Delisting

The latest: The U.S. Securities and Exchange Commission (SEC) on Tuesday added 12 company names to a growing list of New York-traded Chinese firms that could be delisted for failing to comply with U.S. law. The additions are mostly midcap companies, including solar materials company Daqo New Energy (DQ.US; 688303.SH), internet portal Sohu (SOHU.US) and asset manager Noah Holdings (NOAH.US). Looking Up: The addition of the companies to the SEC’s list isn’t related to their individual performance, but instead appears related to recent public filings of their annual reports. Nearly…

Read More »

Cancer Drug Maker BeiGene Takes Action to Mitigate Delisting Risk

Company has changed auditors in a bid to comply with U.S. law and avoid a potential forced delisting from the Nasdaq Key Takeaways: BeiGene has switched auditors for its New York listing to a U.S. company from a Chinese one in a move to comply with U.S. law The change could reduce the company’s threat of being forcibly delisted from the Nasdaq By Doug Young It may have listings in Hong Kong and Shanghai, but cancer drug maker BeiGene Ltd. (BGNE.US; 6160.HK; 668235.SH) is making it clear it wants to…

Read More »