China concept stocks listed on the NASDAQ and NYSE saw a steep fall on March 14 after 5 Chinese companies were put on the provisional list by SEC last Thursday.
Kingsoft Cloud Holdings Ltd fell 47.86 percent to US$2.56 (16.33 yuan), Zhihu was down 27.49 percent to US$1.53. iQiyi, Pingduoduo, New Oriental, Trip.com, and KE Holdings all fell more than 10 percent.
YANG Delong, chief economist of Kaiyuan Securities, said China concept stocks have seen their share prices down as much as 99 percent. “Some of the companies are not doing that well,” Yang said. “But that wouldn’t have led to such drop. Short-selling did that.”
Analyst WANG Zhengzhi from Guotai Junan Securities said the SEC more consider putting more Chinese companies on the provisional list after they release fiscal reports. More China concept stocks may choose to go back to the Chinese mainland or Hong Kong.
