After Ruixing handed over his knife, the United States passed a regulatory bill. 3 trillion yuan in market value of stocks get together for the second listing in Hong Kong

Original title: After Rui Xing handed over the knife, the United States passed a regulatory bill, and the Chinese stock market will be cleaned? 3 trillion yuan in market value of the stocks gathered to go to Hong Kong for secondary listing Source: Maxim Global
May 21st news, on Wednesday, local time, the US Senate passed a bill to strengthen the supervision of foreign companies to enhance the listing qualifications, disclosure requirements and supervision of listed companies in the United States. This news triggered a decline in Chinese stocks, and the Hong Kong Stock Exchange ushered in an explosive rise, becoming the biggest bright spot of the HSI. What is the relationship between them and what does it mean?
The United States strengthens supervision, where does the Chinese stock market go?
On Wednesday, local time, the US Senate passed a bill to strengthen supervision of foreign companies. The bill, called the Foreign Company Accountability Act, provides that any foreign company that fails to comply with the audit requirements of the PCAOB for three consecutive years will prohibit the company ’s securities from being listed on the US stock exchange. . The bill will also require listed companies to disclose whether they are owned or controlled by foreign governments.
Affected by the news, the stock price of Alibaba ADR shares listed in the United States plummeted, and once fell more than 2%, closing the market to stabilize. On the premise of the surge in the US stock market, the Chinese stocks collectively weakened, collectively such as Pinduoduo, Netease, Baidu and others fell more than 1%.
Previously, the Trump administration also expressed support for stricter supervision of Chinese companies. White House economic adviser Larry Kudlow told Fox Business Network on Tuesday morning that “we must” push Chinese companies that are listed on the US market to take more responsibility.
The fuse: Ruixing Coffee’s financial fraud
The market generally believes that the trigger for all this is Ruixing Coffee’s financial fraud.
On April 2, Ruixing Coffee Company exposed itself as a huge financial fraud of 2 billion yuan. Then the stock price plummeted by 90% and suspended trading.
Two weeks after Ruixing Coffee exposed its fraud, the US Securities and Exchange Commission (SEC) issued a statement on April 21 to warn of the risk of the Chinese stock market. Compared with domestic companies in the US, in many emerging markets, including China, the risk of incomplete disclosure or misleading is much greater, and the chances of obtaining recourse are much smaller if investors are harmed . “This significant asymmetry is reflected in the inclusion of quotes and other investor-oriented information, but it usually takes the form of basically the same as the domestic US company.”
On the evening of May 19, Ruixing Coffee announced that it received a written notice from the NASDAQ listing eligibility review department on May 15 and decided to delist Ruixing.
Ruixing plans to hold a hearing and will continue to list on the Nasdaq before the results of the hearing are released. The hearing is usually scheduled 30 to 45 days after the request for the hearing is submitted.
Last night, Ruixing Coffee fell more than 35%.
After Ruixing was delisted, according to Reuters, Nasdaq will announce tightening measures for listing standards. Analysts said that although Nasdaq did not specifically mention Chinese companies when adjusting the rules, the move was mainly due to the lack of accounting for some Chinese companies listed on Nasdaq after Ruixing Coffee’s fraud case Transparency concerns.
3 trillion market capitalization of the stock market together for the second listing
As Chinese stocks have been suppressed in the US market frequently, their pace of listing in Hong Kong has accelerated.
It is reported that JD.com is expected to be listed in Hong Kong for the second time in June, with a fund-raising amount of about 3 billion US dollars. It is expected to be listed on June 18. According to the regulations of the Hong Kong Stock Exchange, JD.com may choose to submit a formal listing application to the Hong Kong Stock Exchange in a confidential manner. NetEase Hong Kong’s secondary listing time may be as fast as June.
In addition to JD.com and NetEase, there are Ctrip and Baidu. For companies seeking a secondary listing in Hong Kong, the Hong Kong Stock Exchange requires that companies listed on the main market of the New York Stock Exchange, Nasdaq or London Stock Exchange (which is classified as “Advanced Listing”), and at least Maintain a good compliance record during the two complete fiscal years; if the market value of the same shares and rights is not less than 10 billion Hong Kong dollars; in other cases, the market value of at least 40 billion Hong Kong dollars at the time of listing, or at least 10 billion Hong Kong dollars And the revenue for the most recent fiscal year is at least HK $ 1 billion. According to market value standards, except for Alibaba and BeiGene, which have already been listed, there are about 16 Chinese stocks eligible for return to Hong Kong, with a total market value of about 419.864 billion US dollars (about 3 trillion yuan). (