In 3 days, “Alibaba” loses $ 39 billion of its market value

Chinese double-listed tech giants Alibaba, Baidu and JD.com lost billions in market value within days.

The losses come amid a possible threat of cancellation of listing on the US stock exchanges.

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As of Friday’s close in Hong Kong, the market value of the four technology stocks listed on the dual exchange exchange fell by HK $ 468.64 billion, or about $ 60.31 billion in three days, according to the report. CNBC calculations for data accessible through Refinitiv Eikon. .

Here is a list showing how much each of the US listed companies lost in terms of market value:

Alibaba: Lost HK $ 303.1 billion ($ 39 billion).

Baidu: Lost 107.54 billion Hong Kong dollars ($ 13.75 billion).

JD.com: Lost 30.674 billion Hong Kong dollars ($ 3.95 billion).

Netease: lost 27.334 billion Hong Kong dollars (3.52 billion dollars).

The United States Securities and Exchange Commission on Wednesday passed a law threatening to kick companies off U.S. stock exchanges unless they meet auditing standards in the United States, known as< Foreign Companies Accountability Act >>. The law was passed by the administration of former President Donald Trump.

Companies designated by the Securities and Exchange Commission will need to be audited by a US regulator and will need to demonstrate that they are not owned or controlled by any government entity in a foreign jurisdiction.

The SEC said in a statement on Wednesday that the companies will also have to appoint one of the board members who are Chinese Communist Party officials.

In addition to these regulatory uncertainties, Chinese tech companies also face potential challenges domestically as Beijing tightens its grip on the rapidly expanding industry and institutes antitrust laws in fintech and e-commerce.

Reuters reported earlier this week that the founder of Chinese tech company Tencent met with Chinese competition officials this month to discuss compliance in his group.

And in a high-profile crackdown last year, the IPO of “Ant Group” (which was billed as the world’s largest) was suddenly suspended days before its debut, billionaire Jack Ma, founder of Alibaba, which controls the said group.

Source: CNBC

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