A trader is working on the floor of the New York Stock Exchange (NYSE) after the opening of the trading session in New York, USA, on March 13, 2020.
Lucas Jackson | Reuters
GUANGZHOU, China – Hong Kong’s main double-listed technology stocks in Hong Kong were hammered on Thursday amid fears that some companies could be listed in the US
Shares of Chinese technology listed on the U.S. in Hong Kong fell sharply. Alibaba fell more than 4% in 13:04 Hong Kong time, Baidu topped 8%, JD.com fell more than 4% and NetEase was almost 3% lower.
It comes a day after the U.S. Securities and Exchange Commission (SEC) passed a law called the Holding Foreign Companies Account Act, which was passed by the administration of former President Donald Trump.
Some companies identified by the SEC will require an audit by a U.S. surveillance agency. These companies will need to submit certain documents to establish that they are not owned or controlled by a government entity in a foreign jurisdiction.
Chinese companies will have to appoint every board member who is a Chinese Communist Party official, the SEC said Wednesday.
The US regulator could stop trading securities that violate its rules.
Chinese technology companies are not only under pressure from the threat of withdrawal abroad, but are also concerned about stricter regulations at home. Beijing has wanted to reign in the power of the tech giants and set new rules in areas, from financial technology to e-commerce.
Although the Chinese government’s crackdown began with the empire of billionaire Jack Ma, including the suspension of the Ant group’s initial mega public offering, there are indications that Beijing’s goals could extend beyond Ant.
Reuters reported this week that Tencent founder Pony Ma met with Chinese antitrust officials this month. Tencent only trades in Hong Kong and its shares were more than 2% lower around 13.17 Hong Kong hours.