Why Shares of DiDi Global, Alibaba, and JD.com Are Falling Today
Shares of several Chinese stocks listed on U.S. stock exchanges are continuing their volatile ways as the situation between U.S. and Chinese regulators plays out.
Shares of the large Chinese ride-hailing company DiDi Global (NYSE: DIDI) traded nearly 10% lower as of 10:50 a.m. ET today. Shares of the large Chinese e-commerce players Alibaba Group Holding (NYSE: BABA) and JD.com (NASDAQ: JD) had fallen nearly 3% and 4%, respectively.
U.S. and Chinese regulators have had a decades-long dispute over accounting practices of Chinese stocks listed on U.S. exchanges. U.S. financial regulators want complete access to audit the financials of Chinese companies that trade in the U.S., but the Chinese government doesn't allow foreign accountants to view the finances of Chinese companies due to national security concerns. In 2020, U.S. lawmakers passed a law called the Holding Foreign Companies Accountable Act (HFCAA), which essentially said Chinese companies would be delisted from U.S. exchanges if U.S. regulators could not properly audit their financials for three straight years.
Source Fool.com
