Shares in Chinese e-commerce giant Alibaba Group fell by 4% last week amid “escalating concerns that the stock may be booted off” the New York Stock Exchange in two years “for failing to comply with US disclosure rules”, says Jenny Yu on Bloomberg.
The US on Friday added the stock to a “growing roster” of Chinese companies facing removal from US exchanges. The problem stems from the fact that a law passed two years ago means that Chinese companies are required to submit their audits to regulators so that their quality can be reviewed, something that Beijing refuses to allow. Alibaba could temper the impact of a potential de-listing in the US by accelerating its plans to upgrade its Hong Kong stock-exchange presence from a secondary to a primary listing, says Iris Deng in the South China Morning Post.
That would help create a “wider and more diversified investor base” as it would give mainland Chinese investors direct access to the group’s shares via the Stock Connect programme. Meanwhile there is hope that the US and Beijing could reach a deal with both sides in discussions to resolve the “accounting spat”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Still, even if Beijing does make enough concessions to allow Alibaba to remain in America, Alibaba has other problems to grapple with, says Oliver Telling in the Financial Times.
It has been “hit by Beijing’s crackdown on the technology sector”, while a foray into the American e-commerce market has been botched. No wonder, then, that its Hong Kong-listed stock has slumped by 70% since 2020.
-
Ofgem proposes new energy tariffs with low or no standing changesStanding charges have invited public backlash as households battle high energy bills
-
Google shares bounce on Gemini 2.0 launchGoogle has launched the latest version of its Gemini AI platform, and markets have responded positively. Is it time to buy Google shares?
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
Best investing appsLooking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go? We round up the best investing apps
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
