Chinese tech companies lost $ 60 billion in three days
Chinese tech companies lost $ 60 billion in three days

Two publicly traded Chinese tech giants - Alibaba, Baidu, and NetEase - have lost billions of dollars in market value in a matter of days.

The loss could result from the threat to cancel the listing on the US stock exchange.

By the end of trading in Hong Kong last Friday, the value of four technology companies listed on the stock exchange had fallen by 468.64 billion HK dollars (60.31 billion US dollars) in three days.

The following list shows the amount of the loss in the market value of each US company listed on the stock exchange.

Alibaba: Hong Kong lost $ 303.1 billion ($ 39 billion).
Baidu: Hong Kong lost 107.54 billion dollars
Jingdong: loss of Hong Kong dollars 30.674 billion
NetEase: Hong Kong lost $ 27.334 billion

On Wednesday, the U.S. Securities and Exchange Commission passed a law threatening companies not to go public unless they adhere to U.S. auditing standards.

This law is known as the "Foreign Corporate Liability Act" and it was approved by the government of former President (Donald Trump).

The law requires companies designated by the Securities and Exchange Commission to conduct audits by US regulators and demonstrate that they are not owned or controlled by government agencies in foreign jurisdictions.

The Securities and Exchange Commission said in a statement on Wednesday that the company is also expected to appoint all board members from Chinese Communist Party officials.

In addition to these regulatory uncertainties, Chinese tech companies face potential challenges as Beijing tightens its control over fast-growing industries and enacts antitrust laws in financial technology and e-commerce.

Reuters reported earlier this week that the founder of Chinese tech company Tencent met with Chinese competition officials this month to discuss the group's compliance concerns.

In a crackdown last year, the largest Ante group in the world was suddenly suspended a few days before its debut, which indicates that the billionaire founder of Alibaba Group (Jack Ma) is the founder of Ant Group. Organizer.

Additionally, with rising bond yields, the entire global tech sector is under pressure.

High returns harm growth stocks because they reduce the relative value of future earnings.

Growth arrows refer to stocks of companies that generate large and continuous positive cash flows and that are expected to increase their revenues and profits faster than the average rate of other companies in the industry.

As optimism grows that the world will recover from the pandemic, investors may look to shift their portfolios from technology to other areas that will benefit from economic developments, such as business development. B. Stocks.

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