To The Moon

It may seem like an ongoing question: to buy stocks from China or not? The No. 1 worry on your list of worries might be the going-down-the-tubes China-U.S. relationship, and Chinese firms risk delisting by the Securities and Exchange Commission (SEC). Should you risk investing in them anyway?

Certain Chinese companies risk delisting from U.S. stock exchanges due to non-compliance with Washington's disclosure requirements. Put simply, this means a company is removed from a stock exchange because the exchange forces the company to delist. Should you "do business" with a Communist nation that has a government that can demarcate as it sees fit?

Let's take a look at several stocks on the chopping block and what you might want to do about them.

Possible Delistings

Delisted stocks often continue to trade over-the-counter. However, you may face higher transaction costs and wider bid-ask spreads, as well as have to deal with the plunge in investor confidence.

PINDUODUO (NASDAQ: PDD)

The e-commerce platform operator Pinduoduo Inc. (PDD) has had slumping shares over the past year due to regulatory crackdowns, though it has shown a continual rise in the stock market recently.

Pinduoduo Inc. operates an e-commerce platform in China and offers the following products:

• Apparel
• Shoes
• Bags
• Childcare products
• Food and beverages
• Fresh produce
• Electronic appliances
• Furniture
• Household goods
• Cosmetics and other personal care items
• Sports and fitness items
• Auto accessories

Analysts expect Pinduoduo's revenue and net income to continue to rise and have demonstrated that it's reasonably valued. Even so, that may not be enough to sway nervous investors who see Pinduoduo on the to-be-delisted list for U.S. stocks.

$Pinduoduo Inc.(PDD)$