7 China Stocks That May Get Delisted

	Good evening - China continues to be on a lot of investors’ minds, and with good reason. Tensions between the United States and China continue to flare up, especially with President Trump trying... Unsubscribe Advertisement Good evening - China continues to be on a lot of investors’ minds, and with good reason. Tensions between the United States and China continue to flare up, especially with President Trump trying to force a sale of Tik-Tok. A core issue is the latter’s handling of the novel coronavirus (i.e. “what did they know and when did they know it”). But there are also issues surrounding global supply chains and the fate of 5G networking. But a more imminent threat to China stocks is a bill that is making its way through Congress. It’s already passed the Senate and is scheduled for debate in the House of Representatives. If the bill becomes law, several publicly traded China stocks will have to consent to U.S. financial regulations or be delisted. And that’s where things get tricky. On the one hand, some publicly traded Chinese companies are wholly owned by the Chinese government. That would automatically disqualify them under the proposed law. On the other hand, even if the companies are not owned by the Chinese government, they are not inclined to open their books to foreign regulators. For example, Luckin Coffee was given a delisting notice from the NASDAQ. Luckin had been in hot water since reports early this year that it had credited itself with thousands of phantom sales. Since then the company had received two notices to adhere to existing rules. But it dropped its request for a hearing. And now the stock stands to be delisted. Now I’m not advocating you invest in LK stock. The company has its own problems. However, if the stocks become delisted – even though it wouldn’t take place for a couple of years – it could present even more difficulty for Americans to have access to many desirable companies.  U.S. relations with China will be an issue during this election year, and likely beyond. It would be well worth your time and attention to pay careful attention to your current or planned exposure to these China stocks. View the “7 China Stocks That May Get Delisted.” Matthew Paulson MarketBeat.com
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