Chinese stocks listed in the U.S may be delisted in the next two years Asian Corporate Governance Association issues warning

According to Jamie Allen, the secretary-general of the Asian Corporate Governance Association, there is likely going to be a delisting of Chinese stocks in the United States in the next two years or three years.

As both parties show a stubborn resistance towards each other, Allen revealed that in a few years the Chinese companies that are listed in the U.S will be removed.

Reports from CNBC on Tuesday revealed that Allen said “There doesn’t seem to be a huge incentive for China to compromise, nor does the U.S. seem to want to compromise.”

The secretary-general said, “There are some discussions ongoing at the moment between the two sides, but these discussions have been going around in circles for quite a long time.”

Adding that, “Unless there is some change in the geopolitical relationship between these two countries, it does seem to us that in two or three years you will start to see delisting.”

Fears of a possible delisting resurfaced after the U.S Securities and Exchange Commission announced that five Chinese businesses whose securities are listed in the U.S. are at risk of being delisted because they failed to comply with the Holding Foreign Companies Accountable Act.

If authorities are unable to review business audits for three years in a row, the Act permits the SEC to delist and even restrict firms from trading on U.S exchanges. 

However, Chinese enterprises have often refused to allow such audits due to concerns about data security raised by Beijing.

Due to the recent turn of events, there was an early drop, but the stock price rebounded sharply when Chinese state media claimed that U.S and Chinese regulators are working on a strategy to ensure cooperation concerning the listed Chinese stocks in the U.S.

The following are some Chinese companies with stocks listed in the U.S.

Alibaba Group Holding Ltd

Tencent Music Entertainment Group

JD.com Inc

Xpeng Inc

Li Auto Inc

NetEase Inc

Zhihu Inc

ZTO Express

DiDi Global Inc

Lufax Holding Limited

Huazhu Group Limited

ZTO Express

NIO Inc

Pinduoduo Inc

Trip.com

BeiGene

Yum China Holdings

China Petroleum and Chemical Corp

KE Holdings Inc

China Life Insurance Co Ltd