Chinese and U.S. flags outside the building of an American company in Beijing, China January 21, 2021.
Tingshu Wang | Reuterss
A new Securities and Exchange Commission rule that will require foreign companies to submit documentation about government affiliations and government influence is causing headaches for China investors. It’s one of several snags that is popping up between U.S. and China investors.
China stocks have been in correction mode for several weeks, but the new rule is exacerbating the rout, particularly those with listings in the U.S.
U.S.-listed China stocks this week:
GSX down 57%
Tencent Music down 36%
Vipshop down 34%
Baidu down 22%
Bilibili down 12%
Trip.com down 11%