Chinese companies have been an integral part of the world economy especially, when it comes to the US Stock Exchanges. With an average of more than 270 entities listed on the market are in danger of being shelved as new regulations have cropped up. According to reports,as of 2024 current companies will have to pass stricter audits to maintain their trading status on the exchanges. This comes as the companies have reached a volume of $600 million dollars in annual revenues.
The international index Nasdaq Golden Dragon, tracks companies listed on the exchange and based in China. A lack of trading volume caused a 30% decline over the past twelve months. As additional companies have sought a double listing on Hong Kong and US exchanges, billions of dollars in market capitalization and earnings are also at stake. The Securities and Exchange Commission made the final preparations after an analysis highlighted the sheer dollar amount at stake from foreign invested companies. The regulatory announcement also prompted a flurry of US based retail investors to shed Chinese American Depository Receipts as the future remains uncertain. China based regulators have also followed suit with their ridesharing company DiDi taking the lead.
