DIDI and other potential delistings

Any takes on this? It’s cratering lots of Chinese ADR’s that trade of the NYSE. Are the stated reasons - protection of Chinese data - legit? Why would a listing on the Hong Kong or any other international exchange be any different in that respect? And if the Chinese delist and stiff American investors in the process would that not limit their access to US capital in the future?
Could any of this have to do with upcoming regulations and banking policies regarding commitments to carbon neutrality? Maybe this will be the start of a trend that will cause even US companies to flee the NYSE for Hong Kong or other exchanges. Environmental pushes which have caused manufacturing to flee ultimately causing capital and financial services to flee as well.
In any event - anyone buying these beaten down ADR’s thinking they are bargains now?

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Purely political move by China. Both the US and China are pushing for decoupling. So expect more Chinese firms to head back to Chinese exchanges. Hong Kong is completely under the thumb of the Chinese Communist Party. They can literally change laws on a dime and incriminate past acts that were perfectly legal before they changed the rules.

I don’t expect US firms to head to Chinese exchanges. There will be a lot of political push back from here and the liquidity is a lot lower. That’s why we see all these Chinese firms listed in NY instead of HK in the past. NY >> HK.


In the future, HK >> NY.

Put your money where your mouth is at then.

You want me to buy exchanges?

I have some baba. 15% down right now. Wondering what to do. Buy more or dump?
Sold JD on Friday luckily for some gain.

If one buys some of these beaten down ADR’s right now that’s kind of what one is doing. The risk is getting stiffed in the exchange of shares. But again that would seem to produce short term gain at the expense of long term pain for the Chinese - no more access to US capital markets.


Somehow I think is long term gain (incentivize HK exchange to grow), short term pain (no more access to US capital market). Chinese companies want to maximize stock prices of their companies hence they choose US capital market since it is the bigger market now. Xi wants to grow HK exchange. The more listed companies, the more capital will be attracted to that exchange. Xi is in the enviable position to increase the number of listed companies in HK exchange by forcing Chinese companies to list there.

For some (ex-)HKers who don’t know this…

You can open a local brokerage account with a Hong Kong-based broker as a foreigner, however, keep in mind that restrictions might exist for citizens of certain countries like the U.S. Stock brokers based outside of the U.S. must be registered with the U.S. Securities Exchange Commission (SEC) and comply with the Foreign Account Tax Compliance Act (FATCA) in order to accept U.S. clients. This is one reason that many local Hong Kong brokers refuse to take on U.S.-based clients.

Btw, any US citizens/ green card holders who have foreign assets have to submit report (can’t remember the name) to FATCA annually. If you have and are not doing so, you are not complying with the law.