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QuestionsCategory: MiscellaneousImplications of China companies facing de-listing
Choon Yip Kok asked 1 year ago

Hi would like to check for Chinese companies listed in the US. With the comply-or-delist deadline under new US audit, in the event IF the company is delisted what will happen to our holdings? Will it be deemed worthless?
Also please correct me if i am wrong, i understand that HK have a minimum 100 shares a lot. So in this case if i am interested in Tencent / Alibaba, i can buy TCEHY / BABA on the US instead since US do not have a minimum shares limit? 
 

redvolver replied 1 year ago

Hi in a nutshell, do not hit panic button. Most probably will not hurt fundamentally strong businesses in short term (1 to 3 years)

U can search google for articles and I saw one that made sense:)

Link: https://www.thestreet.com/etffocus/trade-ideas/china-stock-delisting-wouldnt-affect-it-as-much-as-youd-think

Veteran investors, do correct me if I am wrong

Victor Chng replied 1 year ago

Good sharing redvolver :)

redvolver replied 1 year ago

Thanks!

1 Answers
Victor Chng answered 1 year ago

Hi Choon Yip,

1.If the company have to delist, then they will have to offer a takeover price usually a premium to the the share price of the date they announced.

2.Hong Kong stocks minimum vary for companies. Yes, you can purchase Alibaba with no minimum on US market.