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Late night storm! The United States has once again cracked down on Chinese enterprises, Chinese stocks have plummeted collectively, and the Ministry of Foreign Affairs: The politicization of the US Securities regulatory commission harms others and harms itself

author:Securities Times

            Dot blue letter attention, do not get lost~

U.S. stocks closed lower on Friday, with technology stocks leading the decline. Among them, the Dow fell by 0.17%, the S&P index fell by 0.84%, and the Nasdaq index fell by 1.92%. The Dow Jones Industrial Average fell 0.9 percent for the fourth consecutive week of decline.

The U.S. Securities and Exchange Commission (SEC) announced on the 2nd that it passed a regulatory amendment requiring Chinese-funded companies listed in the United States to disclose more information. Affected by this, the Chinese stocks listed in the United States fell collectively.

U.S. stocks closed down across the board Nasdaq down nearly 2 percent

On Friday, local time, technology stocks sold across the board to push down major U.S. stock indexes.

On the intraday, Apple fell 1.17%, Amazon fell 1.38%, Meta fell 1.14%, Google fell 0.67%, Microsoft fell 1.97%, and Netflix fell 2.33%.

Chip leading stocks generally fell, with Nvidia and AMD falling more than 4 percent, and TSMC falling nearly 2 percent.

Stocks fell on Friday and many investors poured into the U.S. Treasury market, causing the 10-year Treasury yield to fall below 1.4 percent. Some investors are increasingly worried,

Many investors expect the Fed to raise rates next year after keeping interest rates close to zero for a long time. whereas

Some investors say the prospect of a rate hike appears in some variables. The latest monthly employment data released on Friday highlighted that while the unemployment rate fell to its lowest level since February 2020 in November, job growth remained slow, with some divergences leading to very volatile markets overnight.

St. Louis Fed Governor James Bullard said the Federal Open Market Committee (FOMC) may want to accelerate the scaling back of bond purchases at its upcoming meeting. In a written address to the Missouri Bankers Association, Brad said that at its next meeting, the FOMC may want to consider downgrading at a faster rate.

Popular Chinese stocks plunged collectively, didi fell more than 22%

Popular Chinese stocks generally closed lower on Friday, with Didi down more than 22 percent. On Friday, Didi Chuxing's official Weibo announced: After careful study, the company will immediately start the work of delisting on the New York Stock Exchange and start preparations for listing in Hong Kong.

New energy vehicle stocks fell; WEILAI fell 11.19%, Xiaopeng fell 9.30%, and ideally fell 15.95%.

NetEase Youdao fell more than 17%, Wuxin Technology fell more than 16%, iQiyi fell more than 15%, Kingsoft Cloud fell more than 14%, and Qutoutiao fell nearly 14%.

Tencent Music fell nearly 12%, Douyu fell more than 11%, New Oriental fell more than 9%, and Vipshop fell nearly 9%.

Zhihu, Alibaba, Pinduoduo fell more than 8%, Bilibili, Baidu, JD.com fell more than 7%, NetEase fell nearly 7%, Autohome fell nearly 6%, Futu Holdings, Tencent ADR fell more than 5%, Shell fell nearly 3%, and Waterdrop fell more than 2%.

The collective decline in Chinese stocks is also related to another piece of news. According to global times international, on December 2, local time, the U.S. Securities and Exchange Commission (SEC) issued a new rule requiring Chinese companies listed on U.S. stock exchanges to disclose their ownership structure and audit details, even if the information comes from relevant foreign jurisdictions.

Reuters noted that the SEC's rule advanced a process that could eventually lead to more than 200 Chinese companies being weeded out by U.S. exchanges and could make some Chinese companies less attractive to U.S. investors.

The new rule is also believed to echo the Foreign Companies Accountability Act passed by the U.S. Congress in December 2020, which aims to ensure that foreign companies listed in the U.S., particularly Chinese companies, comply with U.S. regulations.

The new rules also require enhanced disclosure requirements for U.S.-listed Chinese companies through a tool called Variable Interest Entities (VIEs).

Will the new SEC rules prevent Chinese companies from listing in the U.S.?

The Ministry of Foreign Affairs responded: Firmly opposed

According to the website of the Ministry of Foreign Affairs, on December 3, 2021, Foreign Ministry Spokesperson Zhao Lijian presided over a regular press conference. A reporter asked: The US market regulator on Thursday passed a rule allowing it to delist foreign companies that cannot provide information to auditors from the Wall Street exchange. That could prevent Chinese companies from going public in the United States. What is your response to this?

Zhao Lijian said that the relevant practices of the US side are another concrete action to suppress the politics of Chinese enterprises, and it is also another concrete manifestation of the US side's suppression and containment of China's development. We strongly oppose that. China has always believed that in today's highly globalized capital market, it is the right way for all parties concerned to openly and honestly strengthen dialogue and cooperation on issues such as strengthening cross-border regulatory cooperation and protecting the legitimate rights and interests of investors. Politicizing securities regulation to the detriment of others will deprive U.S. investors of the opportunity to invest in many of the world's fastest-growing companies, and will also deprive U.S. professional services institutions of many business opportunities. The US side should have a clear understanding of the situation and provide a fair, just and non-discriminatory environment for foreign enterprises to invest and operate in the United States, instead of setting up obstacles. China will take necessary measures to safeguard its legitimate and legitimate rights and interests.

Synthesized from the websites of Wind, brokerage China, Global Times, and ministry of foreign affairs

Editor: Ye Shujun

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