LK - Why This Chinese E-Commerce Stock Is Skyrocketing While Other Chinese Tech Stocks Are Tanking
Last week was a terrible one for Chinese tech stocks, as the U.S. Senate passed the Holding Foreign Companies Accountable Act (HFCA). If passed by the House of Representatives and then signed into law, the new act could mean Chinese stocks will be delisted from U.S. exchanges, should companies choose not to adhere to the law’s new requirements. The new rules would include certifying that the company is not controlled by a foreign government and would also allow an American audit firm to certify any listed company’s financials.
The swift and somewhat unexpected passage led most large-cap Chinese tech stocks to decline for the week -- with one very notable exception: