Repost >Vote to regulate Chinese firms listed on US exchanges already passed in Senate >House votes tomorrow, Wednesday "“The legislation holds that if a company can’t show it’s not under the control of a foreign government, or the PCAOB isn’t able to audit the firm for three consecutive years” It seems to me that although everything Chinese has dumped today, they will dump even more when the vote passes tomorrow.. However, then the market will start to realize "Oh this company will be fine.. this company will be fine.. this company will be fine.." and some will shoot back up theverge.com/2020/6/5/21274457/nio-q1-earnings-deliveries-chinese-government-investment-bailout The major deal Nio inked was with the city of Hefei, the capital of Anhui province. Announced in February and finalized in April, it involves a group of state-owned or state-adjacent construction, economic development, and investment companies pumping about $1 billion into a subsidiary in China created by Nio called, simply, “Nio China.” >the Hefei investor group now owns 24 percent of Nio China I think NIO might get the axe here.. if the legislation requires that the firm not be controlled by the Chinese government.. receiving a bailout from a Chinese province and having them own 1/4 of the company is a pretty bad sign.. I've seen also a lot of buzz that Alibaba gets delisted (why it's tanked) I don't know if that will actually happen.. but if it does, then I think by extension XPEV might shit the bed too (since it's partially owned by BABA) Even LI Auto received $ from municipal governments and CICC bank They also just got the $60 price target from Goldman Sachs today (and $45 target from Citigroup) asia.nikkei.com/Business/Business-Spotlight/China-s-local-governments-ride-to-the-rescue-of-EV-startups They're all looking in bad shape with this bill.. we'll see. If they rebound, go into LI Auto - $60 price target from Goldman is insane when it's currently at $35
