The Chinese stocks that have just rebounded have "exploded" again.
On March 11, according to The Paper, the U.S. Securities and Exchange Commission (SEC) announced that five listed companies in the United States, namely BeiGene, Yum China, Zaiding Pharmaceutical, Shengmei Semiconductor, and Huang Pharmaceutical, were identified as "relevant issuers" with delisting risks under the Foreign Company Accountability Act.
After the news was announced, the named enterprises plummeted in response. As of the close of trading on March 10, EST, BeiGene, Zaiding Pharmaceutical, and Huang Pharmaceutical fell by 5.87%, 9.02%, and 6.53%, respectively.
A stone stirred up thousands of waves, stimulated by the "pre-delisting list", and the Chinese stocks fell again yesterday evening.
As of yesterday's close, the Nasdaq Golden Dragon China Index posted a 10% decline in revenue, its biggest one-day decline since the 2008 financial crisis; Chinese-listED ETFs KWEB and CQQQ closed down about 9.7% and 5.2%, respectively.
In terms of individual stocks, software applications and popular Chinese stocks are in the forefront. Wall Street news mentioned that the four constituent stocks of the NASDAQ 100, Pinduoduo, JD.com, NetEase and Baidu, closed down by about 17.5%, 15.8%, 7.3% and 6.3% respectively, the largest decline since JD.com was listed in the United States. At the same time, Shell fell nearly 24%, iQiyi fell nearly 22%, Good Future fell more than 16%, Futu Holdings fell nearly 16%, and Station B fell more than 14%. In addition, Alibaba also plunged nearly 8% to $92.92, and the stock price fell back to the "starting point of the dream" in 2014...
It is worth mentioning that the "pre-delisting list" of the US Securities and Futures Commission has also attracted a rapid response from the Mainland Securities Regulatory Commission. In the early morning of this morning, the relevant responsible person of the CSRC responded that it respects the supervision of relevant accounting firms by overseas regulators in order to improve the quality of financial information of listed companies, and resolutely opposes the erroneous practice of some forces to politicize securities supervision.
How many discounts have been given to Chinese stocks in the past year?
Overall performance, as of the close of trading on March 10, the average decline of 280 Chinese stocks listed in the United States in the past year was as high as 55.6%, with an average discount of more than half. Among them, education and Internet stocks were the most seriously "affected", almost including the top 20 of the list of declines in the past year, and more than 90% of the market value evaporated. It was jokingly called by investors: "Beggars in the beggars, fall one day when six days."
Source: Wind, data as of March 10, Wall Street News
In terms of the high point of retracement, in the past year, the industries with the largest retracement range have also been concentrated in the education and Internet industries. In addition, Alibaba, JD.com, Baidu, Pinduoduo, Futu Holdings, NetEase, Weilai, Xiaopeng and other "star Chinese stocks" have not performed satisfactorily in the past year.
So, when will the "falling and falling" Chinese stocks usher in the spring again?
These include BeiGene, Yum China, Zaiding Pharmaceutical, Sheng Mei Semiconductor, and Huang Pharma.