ADRs End Lower as Chinese Regulators Tighten Scrutiny Over Foreign-Listed Cos
By Kimberly Chin
International stocks trading in New York closed lower on Tuesday after China said Tuesday that it will tighten rules for Chinese companies seeking to sell shares abroad and strengthen its oversight of overseas-listed companies.
The S&P/BNY Mellon index of American depositary receipts tumbled 1.2% to 167.75. The European index fell 0.9% to 142.35. The Asian index declined 1.3% to 235.52.
The Latin American index decreased 3.8% to 213.34. And the emerging-markets index fell 1.8% to 407.87.
Chinese regulators have intensified their scrutiny on foreign-listed Chinese companies by launching data-security probes into three technology companies, including the newly listed Didi Global Inc., days after the ride-hailing company went public in the U.S. ADRs of Didi tumbled 20% on Tuesday.
China’s cybersecurity regulator also launched data-security reviews into popular mobile apps operated by Full Truck Alliance Co. and Kanzhun Ltd.
Their ADRs fell 6.7% and 16%, respectively.
Didi’s Chinese ride-hailing app, Full Truck Alliance’s two truck-hailing platforms and Kanzhun’s online-recruiting app were ordered to stop adding users while the reviews take place.
Other China-based companies with shares in the U.S. saw their ADRs take a dive, including DouYu International Holdings Ltd., Bilibili Inc. and Tencent Music Entertainment Group.
DouYu’s ADRs fell 16%, Bilibili’s ADRs dropped 9.1% and ADRs of Tencent Music tumbled 6.8%.
Write to Kimberly Chin at [email protected]
(END) Dow Jones Newswires
July 06, 2021 17:52 ET (21:52 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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