Global fund managers holding U.S.-listed Chinese stocks are steadily shifting towards their Hong Kong-traded peers, even as they remain hopeful Beijing and Washington will eventually resolve an audit dispute to keep Chinese firms on American exchanges. The pace of migration will likely accelerate, as more Chinese firms listed in New York are expected to follow technology giant Alibaba's intent to launch so-called primary listings in Hong Kong, potentially boosting liquidity there to smooth the transition. KraneShares CSI China Internet ETF (KWEB), a New York-listed fund focused on Chinese tech plays, started swapping American Deposit Receipts (ADRs) into Hong Kong shares in December, when U.S. securities regulators finalised rules to prohibit trading of Chinese companies not compliant with U.S. audit rules.
Tesla CEO Elon Musk is at it again selling shares of his electric vehicle company, per regulatory filings. This is the first time Musk has sold shares in Tesla since April, when he disposed of 9.6 million shares, worth about $8.5 billion. Musk appears to be selling the shares to stock up on cash in case he's forced to go through on his $44 billion Twitter acquisition.
By Ambar Warrick