Freemarket stocks: Chinese stocks on Wall Street are not yet clear

What happens: Shares of technology companies Alibaba (Baba) In New York it rose nearly 7% on Monday. E-commerce sites பிந்துவோடுவோ (PDD) And JD.com (J.D.) 16% and 7%, respectively.

But the celebration could have been a little earlier, as US and Chinese negotiators sank to the surface details and tensions between the world’s two largest economies.

“Policy is still evolving and there is still a lot of uncertainty,” Xiaomeng Lu, an adviser to the Eurasia Group, told me.

Over the weekend, China’s Security Regulatory Commission, the country’s top securities watchdog, proposed changing a decade-long rule barring Chinese companies from sharing sensitive data and financial information with foreign regulators.

Remember: U.S. regulators have long complained that books by Chinese companies are inaccessible. In 2020, the Holding Foreign Companies Liability Act was signed into law, authorizing the Securities and Exchange Commission to expel foreign companies from Wall Street if U.S. regulators failed to allow them to reconsider their audits for three years.

But Beijing, citing national security concerns, opposes changing its policies. Companies trading abroad are required to conduct their own audits in the mainland of China, where they cannot be inspected by foreign companies.

The new amendment may finally allow US regulators to dig into these competing objects. If it helps resolve the dispute, it will alleviate the concerns of more than 200 Chinese companies listed in the United States.

But it’s too soon to say for sure. It is unknown at this time what he will do after leaving the post. Last week, SEC President Gary Jensler poured cold water on the idea that a deal would be in place soon.

“There are thoughtful, respectful, useful conversations, but I don’t know where this will end,” Zensler said. “It depends on the Chinese authorities, and it may obviously be a difficult choice for them.”

According to Lu, another important factor is whether the Chinese government or companies have access to sensitive data about infrastructure.

“The only clear data point we have so far,” he stressed, Didi. The right-hailing service had to be phased out of New York after its initial public offering last year. Beijing launched a crackdown on the company, whose use violated privacy laws and posed cyber security risks.

What’s next: Lu said there is a 70% chance that some sort of agreement between Washington and Beijing will be reached this year. But he still thinks some Chinese companies should be removed from Wall Street at that time.

He noted that Alibaba is not only an online marketplace, but also a cloud business. If it provides services to state-owned companies, Chinese regulators may want to keep its books private.

What Elon Musk wants on Twitter

The uber-rich CEO of one of America’s leading companies does not take huge stakes every day in a completely different business. But that is exactly what Elon Musk has done.

Latest: The Tesla (DSLA) Chairman disclosed 9% stake Twitter (TWTR) On Monday, shares of the social media site rose 27%.

The investment – which was nearly $ 3.7 billion when the market closed – makes him Twitter’s largest shareholder.

Musk did not disclose the purpose of the purchase or any plans for the company. But that did not stop speculation as to what caused the surprise move.

Musk, who has been a vocal critic of Twitter policies, said analysts expect the company to actively push for changes in the way it operates. Last month, he said he had “serious thinking” about creating a new social media site.

“Twitter is practically a public city square, and failing to adhere to free speech principles is fundamentally undermining democracy,” Musk recently tweeted. “What to do?”

He also suggested (by tweeting a meme, of course) that he did not support CEO Barack Agarwal, who recently took over from Jack Dorsey.

“Musk has already stated that he does not agree with Agarwal’s appointment and wants some changes,” Morningstar analyst Ali Mograbi said in a note to clients.

Business First Row: After his stock was released, Musk tweeted a poll asking Twitter users if they like the Edit button.

But some suspect he may revolt for even bigger changes in the company. There has been speculation that Musk could partner with other aspiring investors or form a consortium to take Twitter personally. The company is valued at $ 40 billion. It is part of a competitive meta with a market value of $ 637 billion.

Starbucks suspended purchase. Is Big Oil Next?

Starbucks (SBUX) The first major move by Howard Schultz following his return as CEO was to make waves with its decision to suspend the share repurchase this week.
Could the world’s largest oil companies be next? That is what the top Democrats in the House of Representatives expect.
House Oversight Chairman Carolyn Maloney and Environment Subcommittee Chairman Roe Khanna wanted ExxonMobil (XOM), Chevron (CVX), PP (PP) And Shell (R.D.S.A.) Plans to repurchase shares and dividends during the war in Ukraine should be canceled and that money should be paid to reduce the price at the gas pump.

“Fossil fuel companies are taking advantage of the crisis by spending billions of dollars to enrich their executives and investors and making record profits,” they wrote in a letter dated Monday.

Lawmakers have urged oil companies to make “meaningful investments” in solar, wind and other clean energy to address the climate crisis.

Oil companies – which make money from rising energy prices – face repeated calls to use spare money to offset the pain of everyday consumers. In the United States and the United Kingdom, there have been calls for a temporary “windfall tax” on household income to help pay off energy bills.

Coming up: The issue will feature at Wednesday’s House hearing where executives from PP, Exxon, Chevron and Shell are scheduled to testify.

Next

The ISM Non-Product Code, which monitors the US service sector, arrives at ET at 10am.

Tomorrow comes: Investors will examine the minutes of the Federal Reserve’s latest meeting for signs of how aggressive the central bank will be later this year.

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