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Sina Corp leaves Wall Street after twenty years on the Nasdaq

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Sina Corp leaves Wall Street after twenty years on the Nasdaq

Global Chinese media network Sina Corp is leaving Wall Street 20 years later as Chinese tech companies come under increased scrutiny by US regulators.

The project will go into private hands. Its chairman and CEO will become the owner. Charles Chao (Charles Chao). The deal is valued at $ 2.6 billion.

The offer price of $ 43.30 per share is 8% higher than the actual value of the securities on the stock exchange. The current level is also higher than the initial buyout offer made by New Wave Holdings, Chao’s investment company, in July.

Sina Corp first listed on the Nasdaq in 2000. The company owns the popular Chinese social network Weibo, which is often compared to Twitter..

Events of this kind are increasingly taking place against the backdrop of growing tensions between the US and China. In recent weeks, the situation has become even more complicated due to the history of the TikTok and WeChat apps, as well as the chipmaker SMIC..

On Wall Street, Chinese companies are also receiving more scrutiny. Luckin Coffee left the Nasdaq list after disclosing massive accounting irregularities. U.S. lawmakers, government agencies, and stock exchanges have since taken numerous steps to limit Beijing’s access to its capital markets..

In May, the US Senate unanimously passed a bill that would prohibit companies that refuse to disclose their records from listing on the US stock exchanges. The bipartisan co-sponsors of the bill have said the goal is to «kick unscrupulous Chinese companies off American exchanges». However, the bill still needs to get approval from the US House of Representatives..

Sina Corp leaves Wall Street after twenty years on the Nasdaq

In August, the US President’s working group on financial markets published a report recommending that Chinese companies tighten control over the US stock exchanges and pay more attention to investments in the Chinese economy..

Fearing potential US regulation issues, as well as wanting to be closer to their investors, several Chinese tech companies have ventured into secondary listings in Hong Kong and Shanghai in recent months..

For example, Alibaba’s financial partner Ant Group chose Shanghai and Hong Kong for its highly anticipated initial public offering, despite Alibaba’s super successful IPO on the New York Stock Exchange in 2014..

«Chinese companies, which are currently listed in the US, will continue to panic in the Hong Kong and domestic markets for a secondary release. These markets will also be the main directions for new listings of businessmen from the Middle Kingdom.», – analysts say Eurasia.