Shares of Chinese companies listed publicly in the U.S. surged Wednesday as China on Wednesday signaled support for the stocks.

Regulators from both countries are progressing toward a cooperation plan on U.S.-listed Chinese stocks, according to Chinese state media. The report cited a meeting Wednesday chaired by Vice Premier Liu He, who heads China’s finance committee.

The Chinese government supports the listing of companies overseas and said its crackdown on technology companies should end soon, the state media report said.

Alibaba jumped about 20%, JD.com added around 24% and Pinduoduo rallied more than 38% Wednesday.

U.S.-LISTED CHINESE STOCKS
TICKER COMPANY PRICE %CHANGE
BABA Alibaba Group Holding Ltd 88.98 15.92
JD JD.Com Inc 56.55 22.98
NTES NetEase Inc 84.89 14.35
BIDU Baidu Inc 124.91 15.25
PDD Pinduoduo Inc 37.02 35.55
NIO NIO Inc 17.31 15.94
YUMC Yum China Holdings Inc 42.43 7.23
The move comes as American depositary receipts of Chinese companies have been beaten down recently amid regulatory and delisting fears. ADRs are shares of non-U.S. firms traded on U.S. exchanges.

The Nasdaq Golden Dragon China index, which tracks the performance of U.S.-listed Chinese stocks, is down 38.8% in 2022 and 69.2% in the past 12 months.

The Securities and Exchange Commission last week named five U.S.-listed ADRs of Chinese companies that failed to comply with the Holding Foreign Companies Accountable Act.

The act allows the SEC to delist and even ban companies from listing on U.S. exchanges if American regulators cannot review company audits for three consecutive years.

Last summer, Chinese regulators stepped up their oversight on U.S.-listed Chinese stocks. Regulators reportedly asked Chinese ride-hailing giant Didi to delist from the U.S. months after the company’s IPO.

Source https://www.cnbc.com/2022/03/16/chinese-stocks-trading-in-the-us-rocket-higher-after-china-signals-support-for-the-shares.html

By block head

Block Head is a blockchain journalist.