在美国主要证券交易所上市的中国公司清单（英文）-2020.11-15页_289kb

Summary of Chinese Companies Listed on Major U.S. Stock Exchanges

Core Content

As of October 2, 2020, there were 217 Chinese companies listed on the NASDAQ, NYSE, and NYSE American, with a total market capitalization of $2.2 trillion. These companies are categorized based on their market cap, and 13 of them are state-owned enterprises (SOEs), marked with an asterisk (*) in the list.

Main Points

• Listing Criteria: A company is considered "Chinese" if it is identified as such by the relevant stock exchange or lists a PRC address as its principal executive office in SEC filings. Companies using offshore entities may obscure their true Chinese corporate domicile, complicating accurate identification.
• Delistings: Since the last update in February 2019, 16 Chinese companies have delisted from U.S. exchanges. Some now trade over-the-counter.
• Audit Oversight Issues: The PCAOB is unable to inspect auditors based in the PRC and Hong Kong, raising concerns about the reliability of financial statements and transparency. As of 2020, 238 companies on the PCAOB list are based in China and Hong Kong.
• Investment Risks: Several risks are associated with investing in Chinese companies, including:
  • Lack of transparency in financial reporting
  • Legal and regulatory challenges in mainland China
  • Potential government control over operations, especially with VIEs
  • National security concerns, particularly with companies involved in censorship or surveillance technologies
• VIE Structure: Many Chinese companies use Variable Interest Entities (VIEs) to bypass foreign investment restrictions. These structures are not fully recognized under Chinese law, which may lead to uncertainty in legal recourse for U.S. investors.

Key Information

• Luckin Coffee case illustrates the risks of financial fraud and market volatility. It raised $561 million during its IPO in 2019 but collapsed after falsified financial data was revealed, leading to its delisting from NASDAQ.
• Qihoo 360 went private in 2016 and relisted on the Shanghai Stock Exchange in 2018, highlighting the potential for misvaluation and legal disputes.
• Government Influence: The Chinese government has strong influence over private companies, including through the 2017 National Intelligence Law and 2017 Cybersecurity Law, which require companies to support state surveillance and censorship.
• Legal Recourse Concerns: The questionable legal status of VIEs means that U.S. investors may not have enforceable rights if the company takes private or fails.
• Data Sources: The list is compiled using data from the NYSE, NASDAQ, Crunchbase, and PCAOB, with market capitalization data from Bloomberg and underwriting information from various financial institutions.

Sector Breakdown

The companies span various sectors, including:

• Technology (e.g., Alibaba, Baidu, Tencent Music, NetEase)
• Finance (e.g., China Life Insurance, PetroChina, Weibo)
• Consumer Services (e.g., JD.com, Pinduoduo, Autohome)
• Energy (e.g., PetroChina, Sinopec)
• Health Care (e.g., Zai Lab, Legend Biotech, 111 Inc.)
• Real Estate (e.g., Pinduoduo, FangDD)
• Transportation (e.g., China Southern Airlines, China Telecom)
• Consumer Durables (e.g., NIO, Li Auto)
• Basic Industries (e.g., Aluminum Corporation of China, Guangshen Railway)

Conclusion

Investing in Chinese companies listed on U.S. exchanges carries significant risks due to lack of transparency, legal uncertainties, and potential national security implications. The use of VIEs and offshore structures further complicates regulatory compliance and investor protection. The PCAOB's inability to inspect audits in China and Hong Kong adds to the concerns about financial reliability and accountability.