About a fifth of the 261 Chinese companies currently listed in the US are probably not qualified to go public on the Hong Kong stock exchange, limiting the options for firms looking to offset the increased risk of a US delisting amid an ongoing auditing stand-off, reports the South China Morning Post.
There are 52 Chinese companies listed in the US—including Renren, Waterdrop and Uxin—which do not currently qualify to go public in Hong Kong through a major listing approach, including a primary listing, secondary listing, dual primary listing and way of introduction, according to data provided to the Post by the equity research team at CMB Wing Lung Bank.
The CMB Wing Lung team based their research on thresholds for the main listing methods on the Hong Kong stock exchange, including market capitalisation, revenue, net profit and operating cash flow, and found that the 52 companies are currently unable to meet all the requirements.
