Chip subsidy act that's intended to cripple China's chip industry
Five Chinese state-owned giants separately announced plans to delist their American depository shares (ADS) from the New York Stock Exchange (read more), drawing widespread attention amid escalating China-US tensions and constant US crackdowns on Chinese companies, including a push to potentially delist hundreds of Chinese firms in what many call a "financial decoupling."
"Rather than exposing themselves to constantly rising political risks in the US, it may be a better choice to delist from the US and rearrange their financing approaches, such as going public in Hong Kong, as many suggested, " Gao Lingyun, an expert at the Chinese Academy of Social Sciences (CASS), said.
Apart from the "financial decoupling" effort, the US has taken a series of provocative actions against China in recent days in many ways, including signing a chip subsidy act that's intended to cripple China's chip industry.
Experts noted that if the US government continues to push for a "financial decoupling" between China and the US, it would lead to huge losses for both markets. There are about 250 Chinese companies listed in the US, whether directly or by using ADS.
Analysts called on the two countries to strengthen communication to address the audit dispute. The US in particularly should meet China half way to reach consensus on the regulatory matter, they added.
"US regulators should think long-term, instead of taking a shorted-sighted approach toward China," Li Daxiao, chief economist at Shenzhen-based Yingda Securities said.
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whqqq : Yes, it may be a better choice to delist from the US and go public in Hong Kong.
Macdonell J : There's a 1.3 Trillion dollars market cap that SEC cannot afford to lose.
YC Xiao : I think short-term pain is better than long-term pain, those shares should exit.