SEC's threat to delist five companies sparks rout of US-traded Chinese shares

SEC's threat to delist five companies sparks rout of US-traded Chinese shares

NYSE. Photo: REUTERS/Brendan McDermid

US-traded Chinese stocks suffered the worst daily decline Friday since the global financial crisis day after the Securities and Exchange Commission named five Chinese companies that could be removed from American stock markets for failing to meet audit requirements.

The Nasdaq Golden Dragon China Index, which tracks more than 90 Chinese stocks traded in the US, closed down 10.18% Friday, the largest decline since October 2008. That followed a 10% drop Thursday. The index has lost 34% this year after sinking 43% in 2021.

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