The US-China trade war may soon cause Chinese companies listed on US stock markets to be delisted. Reuters reports that Baidu Inc. is planning to delist from Nasdaq due to the tension between its home country and the US.
The anonymous sources that revealed the info on the company’s plans, said discussions are still at an early stage and may change.
The sources also said Baidu believes it is undervalued on Nasdaq. The search engine’s shares are reported to have fallen more than 60% since they peaked in May 2018.
The company’s co-founder and Chief Executive, Robin Li, told China Daily that they were paying close attention to America’s tight scrutiny of Chinese companies listed on US stock markets.
For a good company, there are many choices of destinations for listing, not limited to the U.S. – robin Li, Co-founder of baidu,
Baidu, CTrip, and NetEase Inc. are reported to have had discussions with Hong Kong Exchanges and Clearing on a secondary listing just as Alibaba has done so as to have an investor base closer to home.
The US Senate passed a bill on Wednesday that may hinder the listing of Chinese companies on US exchanges unless they follow standards for US audits and regulations. Chinese companies looking to get listed on US exchanges may change their minds following the passage of the bill.
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