WEBVTT
X-TIMESTAMP-MAP=MPEGTS:900000,LOCAL:00:00:00.000

00:00:00.000 --> 00:00:06.480
Course it doesn't help that there were also hit by two
shareholder suits. That's right. So the loophole that China is

00:00:06.480 --> 00:00:12.455
trying to close here is so-called B ISE structure. Basically if
foreign investors are not allowed to own stocks in Chinese

00:00:12.450 --> 00:00:20.465
companies and through the structures every company that goes
public overseas essentially uses a VIX structure. And what China

00:00:20.460 --> 00:00:28.655
is proposing is that if you want to use that structure you will
need an extra layer of approval. So it will really have a lot of

00:00:28.650 --> 00:00:34.050
impact on the remaining pipeline of Chinese ADR listing in the
US and elsewhere. But more importantly D.D. actually is facing a

00:00:34.050 --> 00:00:41.430
lot of heat. We haven't really seen any filings yet but
investors definitely are gearing up for a lot with lawsuits with

00:00:41.430 --> 00:00:44.135
their lawyers and potentially we'll see something coming up very
soon.

00:00:45.810 --> 00:00:52.740
This is going to be a boon for Shanghai's dashboard as well as
Hong Kong right. It is potentially very beneficial for China for

00:00:52.740 --> 00:01:01.290
Hong Kong and Shanghai. But most importantly the US is still the
most liquid capital markets. If you are a sizable company such

00:01:01.290 --> 00:01:08.610
as D.D. you will likely want to top the most offices
investigator invest investors as well as the deepest capital

00:01:08.610 --> 00:01:16.830
markets out there. So you are still houses appeal but there will
be some companies potentially of smaller sizes trying to bypass

00:01:16.830 --> 00:01:23.460
these laws and kind just you know just do the easy way of just
listening in Hong Kong where you still get the international

00:01:23.460 --> 00:01:29.580
investors. So it will be interesting to see what volume goes to
Hong Kong in the coming years. What does it mean for the broader

00:01:29.580 --> 00:01:36.210
tech sector in China that Chinese ADR is trading in the US. So
there hasn't actually been very many Chinese 80 ISE listing in

00:01:36.210 --> 00:01:44.160
the past year since 2018 really has been tapering off. And I
think what what is really important here is that China saying

00:01:44.160 --> 00:01:52.710
that data is why they wanted to stop Didi from listing. So data
is a concern. The same concern I have said with what. And so I

00:01:52.710 --> 00:02:00.510
guess more importantly is that with the data concerns whether
the remaining company that traffic in the same data that Ali

00:02:00.510 --> 00:02:07.625
Baba or Daddy and and it will be will be forced to even delist
in the US and have a home listing instead.