BEKE - Why Shares of JD.Com Alibaba and KE Holdings Are Falling Today
On a day when the broader U.S. market was down sharply, shares of several Chinese stocks listed on U.S. exchanges fell by even larger percentages as investors continue to ponder the ongoing disagreements between U.S. and Chinese financial regulators.
Shares of JD.Com (NASDAQ: JD) were trading nearly 7% lower as of 12:51 p.m. ET Thursday, while shares of Alibaba (NYSE: BABA) were nearly 7% lower and shares of real estate platform operator KE Holdings (NYSE: BEKE) were down more than 9%.
Chinese companies listed on U.S. exchanges face a unique potential headwind as regulators in China and the U.S. work to find a mutually acceptable resolution to a decades-long dispute over how those companies are audited. The Chinese government has long barred foreign accountants from viewing the working financial statements of Chinese companies and blocked the inspection of the auditors of those companies due to what it describes as national security concerns. But U.S. regulators such as the Securities and Exchange Commission (SEC) want these Chinese companies to comply with the same rules as all other businesses listed on U.S. exchanges.
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Why Shares of JD.Com, Alibaba, and KE Holdings Are Falling Today