Why Shares of BeiGene and Zai Lab Are Tanking Today
Shares of BeiGene (NASDAQ: BGNE) and Zai Lab (NASDAQ: ZLAB) were down by 13% and 15%, respectively, as of 2:40 p.m. ET Wednesday. These two Chinese biotechs were getting crushed over fears that they might eventually be forced to delist from the Nasdaq stock exchange.
Rising tensions between Beijing and Washington are stoking concerns about a possible mass migration of American-listed Chinese equities over to exchanges in Hong Kong or Shanghai. But that shift would cost those Chinese companies their access to the massive pool of U.S. investors.
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