Alibaba, Baidu lower as Senate passes bill on Chinese company oversight - InvestingChannel

Alibaba, Baidu lower as Senate passes bill on Chinese company oversight

Shares of Alibaba (BABA), Baidu (BIDU) and other Chinese names are under pressure on Wednesday after the U.S. Senate passed legislation that could ban many Chinese companies from listing their shares on U.S. exchanges or raising money from American investors. BILL ON OVERSIGHT OF CHINESE COMPANIES: According to multiple media reports, the Senate just passed by unanimous consent a bill, called the “Holding Foreign Companies Accountable Act,” which “requires certain issuers of securities to establish that they are not owned or controlled by a foreign government,” according to the bill summary on congress.gov. “Specifically, an issuer must make this certification if the Public Company Accounting Oversight Board is unable to audit specified reports because the issuer has retained a foreign public accounting firm not subject to inspection by the board. Furthermore, if the board is unable to inspect the issuer’s public accounting firm for three consecutive years, the issuer’s securities are banned from trade on a national exchange,” the summary reads. PRICE ACTION: In afternoon trading, shares of Alibaba and Baidu have dropped over 2% each to $212.80 and $107.80, respectively. Also lower, JD.com (JD) has slid more than 3% to $52.48.

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