Why NetEase, Bilibili, and iQiyi Plunged on Thursday
Shares of Chinese consumer companies NetEase (NASDAQ: NTES), Bilibli (NASDAQ: BLI), and iQiyi (NASDAQ: IQ) fell hard on Thursday, with the stocks down 6.7%, 14.3%, and 22.5%, respectively, as of 3:05 p.m. ET.
There wasn't any company-specific news from any of the three companies today. However, an announcement from the Securities and Exchange Commission (SEC) regarding five other Chinese companies hit the wires, which sparked speculation that all U.S.-listed Chinese stocks could be delisted. And of course, ongoing Russia-Ukraine tensions have the potential to spill over into U.S.-China relations, as China has attempted to take a neutral stance on the conflict.
On Thursday, the SEC listed five Chinese companies that had so far failed to obey the Holding Foreign Companies Accountable Act, or HFCAA, which was passed in December 2020. Of note, neither NetEase, Bilibili, nor iQiyi were on the initial list. However, the five companies on the list were likely pointed out because they had already filed their annual reports for 2021. While NetEase, Bilibili, and iQiyi just reported their fourth-quarter 2021 earnings in the past couple of weeks, neither has filed its annual report with the SEC as of yet.
Source Fool.com