There’s been no shortage of China-related drama recently. Remember Jack Ma and the Ant Group IPO? How about rumors of ByteDance ditching its IPO??
You probably remember DiDi’s IPO. China’s government knocked billions from DiDi’s market cap after the app was suspended for concerns over “data security.”
Since the DiDi disaster, US-listed Chinese firms have lost over $2T in market cap. That’s partially because China isn’t stoked about domestic companies listing overseas— they’ll be doing something about that very soon.
China’s not the only player here, though. The US also passed legislation holding Chinese firms to higher reporting standards; companies associated with China’s military have to delist. 🙅
Sooooo… neither the US nor China wants companies listed here. Now, investors/managers are taking action—ARK Invest’s Cathie Wood flattened holdings in Chinese tech stocks, warning of a “valuation reset.”
Over the last 6 months, the iShares MSCI China ETF (featuring Chinese and US-listed Chinese companies) is down 8.66%.