If you’re going to invest in a Chinese stock, here’s what you need to know

CNBC2021-07-07

KEY POINTS Didi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S. The company had warned of regulatory scrutiny in ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

368

Report

Comment（78）

HosayLiao
·2021-07-07
High risk
Reply
3
Report
koolgal
·2021-07-07
A painful lesson learnt the hard way will lead to a more cautious approach the next time!
Reply
7
Report
Fold Replies
- koolgal:
  Agree. Lesson learnt
  2021-07-08
  Reply
  Report
- Wayneqq:
  Must look at the fine prints…. China has been loosely regulated and because they can get away with many things and cause a lot of issues…. they are now clamping down….
  2021-07-08
  Reply
  Report
- daggerw:
  indeed... [难过]
  2021-07-08
  Reply
  Report
View more 2 comments
StarGate
·2021-07-07
Don't ignore the risk behind making money...Read the fine and or small print.
Reply
1
Report
JOHY
·2021-07-07
Oh
Reply
3
Report
Fold Replies
- MrHappy:
  meh
  2021-08-03
  Reply
  Report
- MrHappy:
  go
  2021-07-07
  Reply
  Report
YPLYPL
·2021-07-07
Wait for somemore, observe and analyse before buying!
Reply
2
Report
bzlim
·2021-07-07
Would there be more discount for DiDi?
Reply
1
Report
Taikong
·2021-07-07
It’s a good thing, for a more transparent investing envirommement .
Reply
1
Report
Linnleo
·2021-07-07
Gd to know
Reply
1
Report
Fold Replies
- Milopowder:
  Ok
  2021-07-07
  Reply
  Report
darkenwiz
·2021-07-07
@LamsiesFYI
Reply
2
Report
Surewinner
·2021-07-07
Good read for those who want to invest in Chinese stocks
Reply
1
Report
Fold Replies
- Linnleo:
  yea
  2021-07-07
  Reply
  Report
kkpSG
·2021-07-07
Good
Reply
1
Report
Ermmmmmm
·2021-07-07
Good to enter
Reply
Like
Report
tanks09
·2021-07-07
Didi again!!!
Reply
1
Report
Fold Replies
- TimTamPrata:
  Huat
  2021-07-08
  Reply
  Report
Pestle
·2021-07-07
I think up till a certain point the 'punishment' of these companies would stop before it spooks every investors and make them wary of any and all Chinese stocks, which is definitely not what the regulators and officials want.
Reply
2
Report
Fold Replies
- RS142:
  true
  2021-07-07
  Reply
  Report
lee12
·2021-07-07
Good read
Reply
2
Report
tig2021
·2021-07-07
Who read prospectus when investing?
Reply
Like
Report
Fold Replies
- 超群yibo:
  Most of them not.
  2021-07-07
  Reply
  Report
FrancesLee
·2021-07-07
Tencenttt
Reply
3
Report
NRN
·2021-07-07
DiDi is a great company.. but the regulatory risk is not worth it for now
Reply
1
Report
Fold Replies
- Mtan23:
  Agree
  2021-07-07
  Reply
  Report
- tig2021:
  Political risk will always be a factor in china
  2021-07-07
  Reply
  Report
- ckww:
  I think not only China. Its a political risk in a lot of countries and it also depends on who is leading the country too.
  2021-07-07
  Reply
  Report
wallflowere
·2021-07-07
Scary.. like n comment pls
Reply
2
Report
Fold Replies
- JimmyT:
  ok
  2021-07-07
  Reply
  Report
KamenR
·2021-07-07
Such a pity. Didi should have known better. It’ll take some time to sort out the mess, butIthink they will. Buy the discounts now.
Reply
1
Report

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/1189309849?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2021-07-07 07:36","share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","id":"1189309849","market":"hk","top_or_hot":-1,"title":"If you’re going to invest in a Chinese stock, here’s what you need to know","media":"CNBC","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Source Link</a>\n\n</div>\n","source":"cnbc_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DIDI","symbol_name":"滴滴(已退市)","start_time":0,"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","article_id":"1189309849","we_media_id":null,"thumbnails":[],"rights":{"source":"cnbc_highlight","url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","rn_cache_url":null,"customStyle":"body{padding-top:10px;}.ArticleHeader-headline{#titleStyle#}a{#lv2TextColor#}.ArticleHeader-time, .Author-authorNameAndSocial a{#sourceStyle#;}","selectors":".PageBuilder-pageWrapper","filters":".ArticleHeader-eyebrow, .RelatedTags-relatedTags","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","pubTimestamp":1625614562,"sourceInfo":{"source_id":"cnbc_highlight","name":"CNBC"},"weMediaInfo":null,"summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","collect":0,"end_time":0,"defaultTopTitle":"cnbc.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"DIDI":"滴滴(已退市)","BABA":"阿里巴巴","09988":"阿里巴巴-W"},"translate_title":"如果你打算投资中国股票，以下是你需要知道的","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"09988":0.9,"BABA":0.9,"DIDI":0.9},"content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","kind":null,"is_publish_news":false,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":140525584,"gmtCreate":1625666726148,"gmtModify":1703746017764,"author":{"id":"3575530728444260","authorId":"3575530728444260","authorIdStr":"3575530728444260","name":"HosayLiao","avatar":"https://static.tigerbbs.com/f2987ee3e6cefd75aebf3a60097a0ee6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3575530728444260"},"htmlText":"High risk","listText":"High risk","text":"High risk","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140525584","repostId":1189309849,"repostType":2,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140662972,"gmtCreate":1625655031396,"gmtModify":1703745719945,"author":{"id":"3559581955535845","authorId":"3559581955535845","authorIdStr":"3559581955535845","name":"koolgal","avatar":"https://static.tigerbbs.com/c05274d88ffc0434623e57350c52c70a","vip":2,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":6,"crmLevelSwitch":1,"idStr":"3559581955535845"},"htmlText":"A painful&nbsp;lesson learnt&nbsp;the hard way will lead to a more cautious approach the next time!&nbsp;","listText":"A painful&nbsp;lesson learnt&nbsp;the hard way will lead to a more cautious approach the next time!&nbsp;","text":"A painful lesson learnt the hard way will lead to a more cautious approach the next time!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":6,"repostSize":0,"link":"https://ttm.financial/post/140662972","repostId":1189309849,"repostType":2,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5155255,"gmtCreate":1625706002989,"gmtModify":1663230677234,"authorId":3559581955535845,"author":{"id":3559581955535845,"authorId":3559581955535845,"name":"koolgal","avatar":"https://static.tigerbbs.com/c05274d88ffc0434623e57350c52c70a","vip":2,"currentWearingBadge":{"badgeId":"c4ee29b388ff41cc8462b3b7ea00d1e2-1","templateUuid":"c4ee29b388ff41cc8462b3b7ea00d1e2","name":"Monthly Top Contributor","description":"Top 3 Contributors with the most and best Editor's Picks every month","bigImgUrl":"https://static.tigerbbs.com/b0cad6192443c33dca826a001250fbd4","smallImgUrl":"https://static.tigerbbs.com/5ccd98c646815ce7610b0df338e060cc","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/TW/9000980585","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.04.02","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2003},"crmLevel":6,"crmLevelSwitch":1,"individualDisplayBadges":[{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":0,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.09.20","individualDisplayEnabled":1,"backgroundColor":{"dark":"#675a37","tint":"#f9ebc2"},"fontColor":{"dark":"#ffffff","tint":"#ab7a0e"},"individualDisplaySort":0,"categoryType":2007}]},"repliedAuthorId":0,"objectId":140662972,"type":1,"supId":5154871,"prevId":0,"content":"Agree.&nbsp; Lesson learnt","text":"Agree.&nbsp; Lesson learnt","html":"Agree.&nbsp; Lesson learnt"},{"id":5154871,"gmtCreate":1625704397832,"gmtModify":1663230674732,"authorId":3574671931921507,"author":{"id":3574671931921507,"authorId":3574671931921507,"name":"Wayneqq","avatar":"https://static.tigerbbs.com/05d24be2c05653913e90f51e69cfe2a8","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.10.23","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140662972,"type":1,"supId":0,"prevId":0,"content":"Must look at the fine prints…. China has been loosely regulated and because they can get away with many things and cause a lot of issues…. they are now clamping down…. ","text":"Must look at the fine prints…. China has been loosely regulated and because they can get away with many things and cause a lot of issues…. they are now clamping down…. ","html":"Must look at the fine prints…. China has been loosely regulated and because they can get away with many things and cause a lot of issues…. they are now clamping down…. "},{"id":5152271,"gmtCreate":1625677287077,"gmtModify":1663230666737,"authorId":3581756393031205,"author":{"id":3581756393031205,"authorId":3581756393031205,"name":"daggerw","avatar":"https://static.tigerbbs.com/e4157c588742934fdb76cbe005dc6ec0","vip":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1102},"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140662972,"type":1,"supId":0,"prevId":0,"content":"indeed... [难过]","text":"indeed... [难过]","html":"indeed... [难过]"},{"id":5152869,"gmtCreate":1625692434736,"gmtModify":1663230666631,"authorId":3559581955535845,"author":{"id":3559581955535845,"authorId":3559581955535845,"name":"koolgal","avatar":"https://static.tigerbbs.com/c05274d88ffc0434623e57350c52c70a","vip":2,"currentWearingBadge":{"badgeId":"c4ee29b388ff41cc8462b3b7ea00d1e2-1","templateUuid":"c4ee29b388ff41cc8462b3b7ea00d1e2","name":"Monthly Top Contributor","description":"Top 3 Contributors with the most and best Editor's Picks every month","bigImgUrl":"https://static.tigerbbs.com/b0cad6192443c33dca826a001250fbd4","smallImgUrl":"https://static.tigerbbs.com/5ccd98c646815ce7610b0df338e060cc","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/TW/9000980585","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.04.02","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2003},"crmLevel":6,"crmLevelSwitch":1,"individualDisplayBadges":[{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":0,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.09.20","individualDisplayEnabled":1,"backgroundColor":{"dark":"#675a37","tint":"#f9ebc2"},"fontColor":{"dark":"#ffffff","tint":"#ab7a0e"},"individualDisplaySort":0,"categoryType":2007}]},"repliedAuthorId":0,"objectId":140662972,"type":1,"supId":5152271,"prevId":0,"content":"It will be OK in the long <u>run</u>","text":"It will be OK in the long <u>run</u>","html":"It will be OK in the long <u>run</u>"},{"id":5149070,"gmtCreate":1625660149267,"gmtModify":1663230650550,"authorId":3559581955535845,"author":{"id":3559581955535845,"authorId":3559581955535845,"name":"koolgal","avatar":"https://static.tigerbbs.com/c05274d88ffc0434623e57350c52c70a","vip":2,"currentWearingBadge":{"badgeId":"c4ee29b388ff41cc8462b3b7ea00d1e2-1","templateUuid":"c4ee29b388ff41cc8462b3b7ea00d1e2","name":"Monthly Top Contributor","description":"Top 3 Contributors with the most and best Editor's Picks every month","bigImgUrl":"https://static.tigerbbs.com/b0cad6192443c33dca826a001250fbd4","smallImgUrl":"https://static.tigerbbs.com/5ccd98c646815ce7610b0df338e060cc","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/TW/9000980585","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.04.02","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2003},"crmLevel":6,"crmLevelSwitch":1,"individualDisplayBadges":[{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":0,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.09.20","individualDisplayEnabled":1,"backgroundColor":{"dark":"#675a37","tint":"#f9ebc2"},"fontColor":{"dark":"#ffffff","tint":"#ab7a0e"},"individualDisplaySort":0,"categoryType":2007}]},"repliedAuthorId":0,"objectId":140662972,"type":1,"supId":5148889,"prevId":0,"content":"Yes we learn as we progress in our investing adventure!","text":"Yes we learn as we progress in our investing adventure!","html":"Yes we learn as we progress in our investing adventure!"}],"langContent":"EN"},{"id":140857700,"gmtCreate":1625648833300,"gmtModify":1703745609891,"author":{"id":"3586990023332519","authorId":"3586990023332519","authorIdStr":"3586990023332519","name":"StarGate","avatar":"https://static.tigerbbs.com/9db084b2eae373a6cc56043329defb07","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3586990023332519"},"htmlText":"Don't ignore the risk behind making money...Read the fine and or small print.","listText":"Don't ignore the risk behind making money...Read the fine and or small print.","text":"Don't ignore the risk behind making money...Read the fine and or small print.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140857700","repostId":1189309849,"repostType":2,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140102789,"gmtCreate":1625634493941,"gmtModify":1703745365160,"author":{"id":"3579331938591706","authorId":"3579331938591706","authorIdStr":"3579331938591706","name":"JOHY","avatar":"https://static.tigerbbs.com/01faff4217bc5e19fd6b5d62c156f678","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":4,"crmLevelSwitch":0,"idStr":"3579331938591706"},"htmlText":"Oh","listText":"Oh","text":"Oh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/140102789","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5407601,"gmtCreate":1627948225814,"gmtModify":1663231842560,"authorId":3576627310629871,"author":{"id":3576627310629871,"authorId":3576627310629871,"name":"MrHappy","avatar":"https://static.tigerbbs.com/db25aeb48bc88043744fb93a4c4c3be2","vip":1,"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140102789,"type":1,"supId":0,"prevId":0,"content":"<u>meh</u>","text":"<u>meh</u>","html":"<u>meh</u>"},{"id":5146874,"gmtCreate":1625640685442,"gmtModify":1663230639928,"authorId":3576627310629871,"author":{"id":3576627310629871,"authorId":3576627310629871,"name":"MrHappy","avatar":"https://static.tigerbbs.com/db25aeb48bc88043744fb93a4c4c3be2","vip":1,"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140102789,"type":1,"supId":0,"prevId":0,"content":"<u>go</u>","text":"<u>go</u>","html":"<u>go</u>"}],"langContent":"EN"},{"id":140314226,"gmtCreate":1625629185465,"gmtModify":1703745265963,"author":{"id":"3579393322286269","authorId":"3579393322286269","authorIdStr":"3579393322286269","name":"YPLYPL","avatar":"https://static.tigerbbs.com/9a31a747da3c5f96a141bbf32cd86e34","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"3579393322286269"},"htmlText":"Wait for somemore, observe and analyse before buying!&nbsp;","listText":"Wait for somemore, observe and analyse before buying!&nbsp;","text":"Wait for somemore, observe and analyse before buying!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140314226","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140391707,"gmtCreate":1625627562709,"gmtModify":1703745228156,"author":{"id":"3572436349218639","authorId":"3572436349218639","authorIdStr":"3572436349218639","name":"bzlim","avatar":"https://static.tigerbbs.com/3b2aafaf14823285f7393917b6ff4f54","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3572436349218639"},"htmlText":"Would there be more discount for DiDi?&nbsp;","listText":"Would there be more discount for DiDi?&nbsp;","text":"Would there be more discount for DiDi?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140391707","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140309005,"gmtCreate":1625626817907,"gmtModify":1703745209026,"author":{"id":"3579778439260265","authorId":"3579778439260265","authorIdStr":"3579778439260265","name":"Taikong","avatar":"https://static.tigerbbs.com/da72b8789a930a66f420cd52c0084631","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3579778439260265"},"htmlText":"It’s a good thing, for a more transparent investing envirommement .","listText":"It’s a good thing, for a more transparent investing envirommement .","text":"It’s a good thing, for a more transparent investing envirommement .","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140309005","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140956349,"gmtCreate":1625625201281,"gmtModify":1703745170772,"author":{"id":"3584658134750205","authorId":"3584658134750205","authorIdStr":"3584658134750205","name":"Linnleo","avatar":"https://static.tigerbbs.com/b57e83af12c17b31db1fb1b80ea44c6a","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":2,"crmLevelSwitch":0,"idStr":"3584658134750205"},"htmlText":"Gd to know","listText":"Gd to know","text":"Gd to know","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/140956349","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5145138,"gmtCreate":1625625488763,"gmtModify":1663230629751,"authorId":3583235292459629,"author":{"id":3583235292459629,"authorId":3583235292459629,"name":"Milopowder","avatar":"https://static.tigerbbs.com/af7c551102488406a8f7f878051ada74","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140956349,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"EN"},{"id":140951344,"gmtCreate":1625625138688,"gmtModify":1703745167573,"author":{"id":"3582705069023943","authorId":"3582705069023943","authorIdStr":"3582705069023943","name":"darkenwiz","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3582705069023943"},"htmlText":"<a href=\"https://laohu8.com/U/3586430022935332\">@Lamsies</a>FYI","listText":"<a href=\"https://laohu8.com/U/3586430022935332\">@Lamsies</a>FYI","text":"@LamsiesFYI","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140951344","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140925265,"gmtCreate":1625624860857,"gmtModify":1703745160322,"author":{"id":"3584997739812152","authorId":"3584997739812152","authorIdStr":"3584997739812152","name":"Surewinner","avatar":"https://static.tigerbbs.com/d5049b7020bddebdcea8f3b550917b1c","vip":1,"crmLevel":1,"crmLevelSwitch":1,"idStr":"3584997739812152"},"htmlText":"Good read for those who want to invest in Chinese stocks","listText":"Good read for those who want to invest in Chinese stocks","text":"Good read for those who want to invest in Chinese stocks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/140925265","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5145102,"gmtCreate":1625625213219,"gmtModify":1663230632926,"authorId":3584658134750205,"author":{"id":3584658134750205,"authorId":3584658134750205,"name":"Linnleo","avatar":"https://static.tigerbbs.com/b57e83af12c17b31db1fb1b80ea44c6a","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-1","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Debut Tiger","description":"Join the tiger community for 500 days","bigImgUrl":"https://static.tigerbbs.com/0e4d0ca1da0456dc7894c946d44bf9ab","smallImgUrl":"https://static.tigerbbs.com/0f2f65e8ce4cfaae8db2bea9b127f58b","grayImgUrl":"https://static.tigerbbs.com/c5948a31b6edf154422335b265235809","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.10.04","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140925265,"type":1,"supId":0,"prevId":0,"content":"<u>yea</u>","text":"<u>yea</u>","html":"<u>yea</u>"}],"langContent":"EN"},{"id":140967692,"gmtCreate":1625624395016,"gmtModify":1703745148848,"author":{"id":"3577664955394445","authorId":"3577664955394445","authorIdStr":"3577664955394445","name":"kkpSG","avatar":"https://static.tigerbbs.com/fa75088baee89cae791381be8da0113a","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3577664955394445"},"htmlText":"Good&nbsp;","listText":"Good&nbsp;","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140967692","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140917061,"gmtCreate":1625623358053,"gmtModify":1703745118958,"author":{"id":"4087557783698070","authorId":"4087557783698070","authorIdStr":"4087557783698070","name":"Ermmmmmm","avatar":"https://static.tigerbbs.com/b89bbeb73fe9212f0b5efc7185ae8a51","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4087557783698070"},"htmlText":"Good to enter&nbsp;","listText":"Good to enter&nbsp;","text":"Good to enter","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140917061","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140914801,"gmtCreate":1625623346503,"gmtModify":1703745117928,"author":{"id":"3581816252667558","authorId":"3581816252667558","authorIdStr":"3581816252667558","name":"tanks09","avatar":"https://static.tigerbbs.com/0d3a860d19cbe659e537ab4dcbdc7d1d","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3581816252667558"},"htmlText":"Didi again!!!&nbsp;","listText":"Didi again!!!&nbsp;","text":"Didi again!!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/140914801","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5155270,"gmtCreate":1625706091605,"gmtModify":1663230676943,"authorId":3581478820646520,"author":{"id":3581478820646520,"authorId":3581478820646520,"name":"TimTamPrata","avatar":"https://static.tigerbbs.com/7112dd358a087dca78af99b862816363","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140914801,"type":1,"supId":0,"prevId":0,"content":"Huat","text":"Huat","html":"Huat"}],"langContent":"EN"},{"id":140910004,"gmtCreate":1625623002008,"gmtModify":1703745104829,"author":{"id":"3581981444027204","authorId":"3581981444027204","authorIdStr":"3581981444027204","name":"Pestle","avatar":"https://static.tigerbbs.com/04945f4c1d88893d9bf233f4c190098b","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3581981444027204"},"htmlText":"I think up till a certain point the 'punishment' of these companies would stop before it spooks every investors and make them wary of any and all Chinese stocks, which is definitely not what the regulators and officials want.&nbsp;","listText":"I think up till a certain point the 'punishment' of these companies would stop before it spooks every investors and make them wary of any and all Chinese stocks, which is definitely not what the regulators and officials want.&nbsp;","text":"I think up till a certain point the 'punishment' of these companies would stop before it spooks every investors and make them wary of any and all Chinese stocks, which is definitely not what the regulators and officials want.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/140910004","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5144819,"gmtCreate":1625623555160,"gmtModify":1663230630652,"authorId":3574118564601995,"author":{"id":3574118564601995,"authorId":3574118564601995,"name":"RS142","avatar":"https://static.tigerbbs.com/22d2d9b1f352da24e6ea75b557ac987a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140910004,"type":1,"supId":0,"prevId":0,"content":"true","text":"true","html":"true"}],"langContent":"EN"},{"id":140935614,"gmtCreate":1625622878338,"gmtModify":1703745101202,"author":{"id":"3579588834516990","authorId":"3579588834516990","authorIdStr":"3579588834516990","name":"lee12","avatar":"https://static.tigerbbs.com/12361a2024c0ae8c8d97fd2339a79201","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3579588834516990"},"htmlText":"Good read&nbsp;","listText":"Good read&nbsp;","text":"Good read","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140935614","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140930691,"gmtCreate":1625622447413,"gmtModify":1703745091537,"author":{"id":"3587008457873110","authorId":"3587008457873110","authorIdStr":"3587008457873110","name":"tig2021","avatar":"https://static.tigerbbs.com/86558e2c1be0fae967630b306994ef5a","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"3587008457873110"},"htmlText":"Who read prospectus when investing?&nbsp;","listText":"Who read prospectus when investing?&nbsp;","text":"Who read prospectus when investing?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/140930691","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5144933,"gmtCreate":1625624284108,"gmtModify":1663230633150,"authorId":3576231291459124,"author":{"id":3576231291459124,"authorId":3576231291459124,"name":"超群yibo","avatar":"https://static.tigerbbs.com/6594cf6901beda8fdf0f00a0e5853f18","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140930691,"type":1,"supId":0,"prevId":0,"content":"Most of them not.","text":"Most of them not.","html":"Most of them not."}],"langContent":"EN"},{"id":140907365,"gmtCreate":1625622042157,"gmtModify":1703745075603,"author":{"id":"4087466140124750","authorId":"4087466140124750","authorIdStr":"4087466140124750","name":"FrancesLee","avatar":"https://static.tigerbbs.com/d428bef3777947926a8b7049f4c8b399","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4087466140124750"},"htmlText":"Tencenttt","listText":"Tencenttt","text":"Tencenttt","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140907365","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":140076844,"gmtCreate":1625621491688,"gmtModify":1703745055945,"author":{"id":"3563581390514944","authorId":"3563581390514944","authorIdStr":"3563581390514944","name":"NRN","avatar":"https://static.tigerbbs.com/3561ad0f76bae7ec1e64062bc70f0207","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3563581390514944"},"htmlText":"DiDi is a great company.. but the regulatory risk is not worth it for now&nbsp;","listText":"DiDi is a great company.. but the regulatory risk is not worth it for now&nbsp;","text":"DiDi is a great company.. but the regulatory risk is not worth it for now","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/140076844","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5144951,"gmtCreate":1625624357483,"gmtModify":1663230630126,"authorId":3579572647008782,"author":{"id":3579572647008782,"authorId":3579572647008782,"name":"Mtan23","avatar":"https://static.tigerbbs.com/21a2ddfc414d0d3eab50e895e776bf23","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140076844,"type":1,"supId":0,"prevId":0,"content":"Agree","text":"Agree","html":"Agree"},{"id":5144620,"gmtCreate":1625622398514,"gmtModify":1663230629851,"authorId":3587008457873110,"author":{"id":3587008457873110,"authorId":3587008457873110,"name":"tig2021","avatar":"https://static.tigerbbs.com/86558e2c1be0fae967630b306994ef5a","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-2","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Master Trader","description":"Total number of securities or futures transactions reached 100","bigImgUrl":"https://static.tigerbbs.com/ad22cfbe2d05aa393b18e9226e4b0307","smallImgUrl":"https://static.tigerbbs.com/36702e6ff3ffe46acafee66cc85273ca","grayImgUrl":"https://static.tigerbbs.com/d52eb88fa385cf5abe2616ed63781765","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"80.40%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":2,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140076844,"type":1,"supId":0,"prevId":0,"content":"Political risk will always be a factor in <u>china</u>","text":"Political risk will always be a factor in <u>china</u>","html":"Political risk will always be a factor in <u>china</u>"},{"id":5144928,"gmtCreate":1625624243860,"gmtModify":1635235376650,"authorId":3581586523786578,"author":{"id":3581586523786578,"authorId":3581586523786578,"name":"ckww","avatar":"https://static.tigerbbs.com/bc2cc1ef6533d547201ce880e7c04b9c","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140076844,"type":1,"supId":5144620,"prevId":0,"content":"I think not only China. Its a political risk in a lot of countries and it also depends on who is leading the country too.","text":"I think not only China. Its a political risk in a lot of countries and it also depends on who is leading the country too.","html":"I think not only China. Its a political risk in a lot of countries and it also depends on who is leading the country too."}],"langContent":"EN"},{"id":140041031,"gmtCreate":1625621094423,"gmtModify":1703745039582,"author":{"id":"3579733246085840","authorId":"3579733246085840","authorIdStr":"3579733246085840","name":"wallflowere","avatar":"https://static.tigerbbs.com/a5072464fdb4037d83d403dc2e80c19c","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3579733246085840"},"htmlText":"Scary.. like n comment pls","listText":"Scary.. like n comment pls","text":"Scary.. like n comment pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/140041031","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5144367,"gmtCreate":1625621284047,"gmtModify":1663230627435,"authorId":3581661369298834,"author":{"id":3581661369298834,"authorId":3581661369298834,"name":"JimmyT","avatar":"https://static.tigerbbs.com/748bb288232d8c7092b92b303f282d6e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":140041031,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"}],"langContent":"EN"},{"id":140056160,"gmtCreate":1625620831850,"gmtModify":1703745028417,"author":{"id":"3583799729432788","authorId":"3583799729432788","authorIdStr":"3583799729432788","name":"KamenR","avatar":"https://static.tigerbbs.com/db3db81fd6b762e83625b40b8566dec3","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3583799729432788"},"htmlText":"Such a pity. Didi should have known better. It’ll take some time to sort out the mess, butIthink they will. Buy the discounts now.&nbsp;","listText":"Such a pity. Didi should have known better. It’ll take some time to sort out the mess, butIthink they will. Buy the discounts now.&nbsp;","text":"Such a pity. Didi should have known better. It’ll take some time to sort out the mess, butIthink they will. Buy the discounts now.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/140056160","repostId":1189309849,"repostType":4,"repost":{"id":"1189309849","pubTimestamp":1625614562,"share":"https://ttm.financial/m/news/1189309849?lang=&edition=fundamental","pubTime":"2021-07-07 07:36","market":"us","language":"en","title":"If you’re going to invest in a Chinese stock, here’s what you need to know","url":"https://stock-news.laohu8.com/highlight/detail?id=1189309849","media":"CNBC","summary":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing co","content":"<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>If you’re going to invest in a Chinese stock, here’s what you need to know</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIf you’re going to invest in a Chinese stock, here’s what you need to know\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-07 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in ...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BABA":"阿里巴巴","09988":"阿里巴巴-W","DIDI":"滴滴(已退市)"},"source_url":"https://www.cnbc.com/2021/07/06/what-you-need-to-know-if-youre-investing-in-a-chinese-stock-ipo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1189309849","content_text":"KEY POINTS\n\nDidi’s shares fell after major government probes were announced into the ride-hailing company just days after its massive IPO in the U.S.\nThe company had warned of regulatory scrutiny in its prospectus, including that it had “not obtained the required permits for all cities where we are required to do so.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets.\n\nBEIJING — For investors in Chinese IPOs likeDidi, reading the fine print will become more critical for avoiding losses.\nRide-hailing app Didi — dubbed the “Uber of China” — raised $4.4 billion on Wednesday in the biggest U.S. initial public offering of any Chinese company since Jack Ma’s e-commerce giantAlibabawent public in 2014.\nTwo days later, Didi’s shares fell 5.3% afterChinese regulators announced a cybersecurity investigation into the company,suspending new user registrations. Then on Sunday, the agency ordered Chinese app stores to remove Didi’s main app over data privacy concerns. Existing customers can still use the ride-hailing app.\nWarning signs\nWhile many investors in the U.S. may never use Didi or know much about China’s regulatory environment, the company — and other Chinese IPOs — disclosed some warning signs in their prospectusesfiled with the U.S. Securities and Exchange Commission ahead of the stock offering.\nOn the second page of a section titled “Risks Relating to Doing Business in China,” Didi said it had two meetings with regulators in April and May, along with industry peers. The company warned that in both cases, it could not ensure that efforts to comply would satisfy regulators.\nIn addition, Didi said in its prospectus it had “not obtained the required permits for all cities where we are required to do so” and “not all drivers on our platforms have gone through the process to obtain the requisite licenses in each city where we operate.”\n“The rules are there, but the internet companies normally ignored these regulations and (venture capital firms) ignored the compliance issues,” said Ming Liao, founding partner of Beijing-based Prospect Avenue Capital, which manages $500 million in assets. The firm expects a few of its invested companies will list in the U.S. this year.\nBefore its IPO, Didi was valued at $62 billion as one of the five largest privately held start-ups in the world, according to CB Insights.\nGoldman Sachs Asia, Morgan Stanley and J.P. Morgan were among the slew of investment banks that underwrote Didi’s IPO, while SoftBank was a major investor, according to a filing.\nHowever, Dididid not disclose all aspects of its businesses in China,such as its finance technology arm.\nIncreased regulations in the last year\nThe heightened scrutiny on Didi is the latest move by authorities to tighten regulation in the last 10 months.\nLast fall,Alibabafounder Jack Ma gave a speech in Shanghai that served as a wake-up call for authorities, Liao said.\nMa’s comments appeared to criticize regulators, and came shortly before the company’s fintech affiliate Ant was set to list in Hong Kong and Shanghai in November. Days before the stock offering,Chinese regulators abruptly suspended the IPO, and subsequentlyfined Alibaba $2.8 billion in an anti-monopoly probe.\n“The government realized the internet companies, especially the internet giants (were) becoming too powerful to comply with the regulations,” Liao said.\nThree days after China announced a cybersecurity probe into Didi, thesame agency announced an investigation into businesses held by two Chinese stocks that went public in the U.S.in the last month —Full Truck AllianceandBoss Zhipin, which filed under the name “Kanzhun.”\n“The regulatory crackdown is one that is not intended to completely curtail profitability for these large companies,” Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, said Monday on CNBC’s “Street Signs Asia.”\n“We think broadly it’s an attempt to update a regulatory framework that is needed in a rapidly changing environment,” he said. The investment bank expects stocks affected by regulatory concerns to rise over the next six months.\nRisks for investors\nAhead of Full Truck Alliance’s IPO, the companydisclosed in its prospectus a history of data privacy violations.Boss Zhipin said it could face fines of up to 10,000 yuan ($1,562.50) per office space leasefor not registering the agreements as required by Chinese law.\nThe three companies above also discussed general uncertainty about Chinese government actions, growing scrutiny against monopolistic practices and U.S.-China tensions.\nAnother risk for investors is that founding executives typically retain a large controlling stake the U.S.-listed Chinese companies.\nDidi’s two co-founders Will Cheng and Jean Liu hold a combined 58.1% of aggregate voting power. Boss Zhipin’s founder Peng Zhao had 76.2% of voting power, and Full Truck Alliance’s founder Peter Zhang had 83.4%, filings showed.\nWhile analysts said China’s lax regulatory environment allowed start-ups to experiment and grow rapidly, the lack of enforcement has also attracted speculators and permitted business practices that sometimes came at the expense of consumer savings or safe labor conditions.\nMeanwhile, differences in regulation and language allowed some Chinese companies to raise money in the U.S. with less scrutiny and investor understanding that an American company might have faced.\nCases of fraud\nIn 2018, the American documentary “The China Hustle” estimated that pension funds and retirement fundslost at least $14 billion to Chinese stocks that turned out to be frauds.\nLast year, revelation that a Nasdaq-listedLuckin Coffee executive fabricated sales worth about $314 millionprompted the stock’s delisting. Later in the year, thecollapse of Danke, a Chinese residential rental businessowned by U.S.-listed Phoenix Tree Holdings, also led to its delisting from the New York Stock Exchange.\nU.S.-listed Chinese companies often used a listing structure that allowed the stock to exist in a grey zone between the U.S. and China, said Winston Ma, former managing director and head of North America for China Investment Corporation (CIC), a sovereign wealth fund.\nNow, both countries are stepping up regulation.\n“In the future, similar companies may go through a more prolonged regulatory review process for (an) IPO,” Ma said, who is co-author of the book “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy.\nWhat this could mean for Chinese IPOs\nThe increased regulatory action will likely slow the rush of Chinese IPOs in the U.S., analysts said.\nChinese companies have clamored to list in New York, often for branding purposes, regardless of U.S.-China tensions. Last year, 30 China-based IPOs in the U.S. raised the most capital since 2014, according to Renaissance Capital.\nAs recent as late April,about 60 Chinese companies were still planning to go public in the U.S. this year, according to a representative for the New York Stock Exchange. An update wasn’t available as of Tuesday.\nAnother Chinese company that listed last week, grocery delivery companyDingdong, cut itsoffering size by 70%following the poor debut of industry rivalMissfresha few days earlier.\nEach prospectus lists more than 35 points on which the companies “cannot assure” investors of growth and different aspects of business success.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":368,"commentSize":78,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}