Financials Mar 12, 2022 10:28 AM (GMT+8) · EqualOcean
CITIC Securities Research Report said that on March 10, the CSRC disclosed for the first time five companies temporarily included in the "pre delisting list" due to the foreign company liability act. The recent conflict between Russia and Ukraine and the expectation of overseas monetary tightening have "amplified" investors' concerns about China's delisting. In fact, the regulation of China concept has been tightened for a long time. This incident is only the normal procedure of law enforcement by the US regulatory authorities. Considering the interchangeability of the objects listed in Hong Kong and the United States at the same time, and in recent years, the Hong Kong Stock Exchange has also continuously optimized the listing system of overseas issuers, which has provided a "bottom line" for China concept shares with delisting risk, it is judged that the foreign company liability act has a limited impact on enterprises listed in Hong Kong. However, considering the transmission mechanism of the subject matter listed in Hong Kong and the United States, we still need to be vigilant in the short term against the risk of overseas Chinese stocks callback due to the pressure of market sentiment under the influence of multiple factors in the near future.

This text is a result of machine translation.