I'm from the Government and I'm here to help
Thoughts about regulatory clampdown on Didi and the impact on China market HK stocks took another beat-down as the Chinese government took intricate measures to interfere with the raising of capital of China companies in US stock exchanges. The Chinese government took extreme steps to punish Didi from registering new users days after its US IPO under the guise of data protection, prompting a chilling effect to China companies, which withdrew their US IPO plans. What started as a nationalist initiative from Trump to delist China companies from US exchanges <Punish the Chinese from free loading on US capital markets>, was caught on by the Chinese government whom seek to take this further. By setting new regulation on the VIE structure, tweaking the disclosure requirements, and launching crackdowns on the largest Chinese companies, the Chinese government seems focused on legitimating its control over the tech giants, as it acknowledges their market presence on the economy. This move...