China tech firms that delisted from Wall Street are now stuck
If former Wall Street-listed tech firms can't relist in Mainland China, will they be welcome in Hong Kong?
Still remember the news? Just a few weeks ago, more than 20 Chinese internet firms listed in the United States were leaving Wall Street via delistings as many of them were dreaming about relisting in China for higher valuations.
Those who decided to delist must regret deeply now as few of them could have predicted a stock market crash - one of the worst in years - in China in recent weeks.
On Saturday, Beijing decided to suspend new listings until the market stabilised. This suspension decision – directly coming from the State Council led by Premier Li Keqiang – could mean those internet firms that delisted from Wall Street are stuck.
Blame whom? Blame yourself and your greed.
On the other hand, many internet business leaders can't help thinking about relisting in China, especially on the Nasdaq-style, technology sector-focused ChiNext market in Shenzhen. Its benchmark index gained over 130 per cent from the beginning of the year to early June before crashing.