Alibaba, JD Stocks Suffer Heightened US Exodus Over Regulatory Clash

Chinese e-commerce giants have seen more of their shares shift to the Hong Kong market as Beijing failed to impress U.S. regulators, Bloomberg reports.
Bloomberg saw ~77% of JD.com Inc's JD shares circulating in Hong Kong's clearing and settling system as of April 19, versus 44% at the 2022 beginning.
The shift highlighted that the U.S. delisting risk remained a lingering concern as investors slashed exposure to American depositary shares to avoid direct regulatory shocks leading to the trading suspensions and liquidation of their stock in the U.S.
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Alibaba Group Holding Ltd's BABA Hong Kong-listed share portion rose to 56% from 53%.
The portion of Hong Kong-listed shares at JD.com and Alibaba had already almost doubled in 2021.
Most of 2022's conversions at Alibaba and JD.com occurred in April, despite China allowing access to auditing reports for U.S. regulators. Still, the odds of delisting stood at 50% as per a fund manager, depending on how China will grant U.S. audit access and to what companies.
The Hang Seng Tech Index has dropped 27% in Hong Kong in 2022, with the risk of abandoned U.S. listings remaining a key overhang for the sector.
Price Action: BABA shares traded higher by 0.06% at $93.56 in the premarket on the last check Wednesday.