Potential delisting of Chinese Stocks

📊 Investing
1

In the recent news there is chatter about Chinese stocks being delisted from the US stock exchange.

If stocks like Alibaba are delisted. What would happen to our shares on the trading 212 platform?

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Depends on the law, but there are a few things I see. Keeping positions opened and show prices from OTC market if available or selling at the best possible price. It’s unique situation, no one could predict that. T212 will inform us for sure.

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@Tony.V

Can T212 offer some advice on how they will react in the event of a delisting of chinese companies?

My preference would be to hold the stock and be transferred onto the exchange that stock lists itself.

e.g. Alibaba delisted US and listed onto Hong Kong exhange. or whereever it moves to.

Is that a scenario T212 could facilitate, or will we be have no other option to sell from US xchg?

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@regional11 We’re still not sure, it doesn’t depend entirely on us. We’ll have more info should the process actually be initiated.

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@David

Ok thanks. Just read that its not an instantaneous drop off rather a minimum of 30 days from the process being initiated. What this space I guess :wink:

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Thanks for the update David!

7

It may be best to sell all shares in companies that may be delisted now, prior to any confirmed de-listing, because I imagine that the confirmed announcement will cause the share price to fall.

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I am looking at a buyers prospective.

The companies will inevitably switch onto another exchange rapidly and at that point a window of opportunity to buy at a undervalued price presents itself for a high quality stock. Time being of the essence to track that exchange switch and provisions made on this platform (i.e. make it available) will be key, if announced.

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Hi

Any more updates on this as the tensions grow.

Are we saying trading 212 will still be trading these stocks if delisted & are on the Hong-Kong market which alibaba is.

So it’ll just transfer?

And if it doesn’t & I miss selling my stocks before it goes straight down to £1 per share, where will I be able to sell the shares if you cannot pick them up in the Hong-Kong market?

How do i even prove i have the shares if it disappears?

I am a bit lost.

Thanks

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it will depend on how the politics play out as to what actions T212 will be able to take.

Should we get access to the Hong Kong exchange before a de-listing happens and the stocks are listed on both exchanges, then its most likely they will transfer and you can continue to trade them.

In the scenario that they go when we don’t have access, you would either sell at the last trading prices of active market, or they would be unbuyable/unsalable until another market is accessed while they remain sat in your portfolio. I believe the favoured action is the ‘hold until a new market is made accessible’ as this prevents creating a tax event that many would like to avoid.

11

Can Trump even enforce that?

Would he really want to when stock like BABA are held by corporations such as the Bill & Melinda Gates Foundation?