Delisting Chinese concept stocks? Hong Kong is the first choice for Chinese companies to access global capital markets...

The recent moves in the U.S. stock market have been dizzying. On one hand, the U.S. is waving the tariff stick at China, and on the other, it claims trade negotiations are progressing positively—this kind of tactic is nothing new to anyone. Treasury Secretary Bassett even warned China not to retaliate, essentially saying, "You have to listen to me." More severe threats have also emerged, with talks of delisting Chinese companies from U.S. exchanges, "everything is under consideration." To put it bluntly, the U.S. is now using Chinese stocks as bargaining chips on the negotiation table to intimidate and contain China.

In reality, the status of Chinese stocks in the U.S. market has been growing over the past two years. Currently, there are 286 Chinese companies listed in the U.S., with a total market cap of $1.1 trillion. Compared to early 2024, when there were only 265 companies with a total market cap of $848 billion, this means an addition of 21 companies and a $250 billion increase in market cap in just over a year. While this seems impressive, the top 50 companies (like Alibaba and PDD) account for 95% of the total market cap, showing that mid- and small-cap stocks have limited influence, and the market’s focus remains on the giants.

That said, veterans like Alibaba, NetEase, and JD.com are no fools—they’ve already secured secondary listings in Hong Kong or even dual-primary listings. The number of Chinese stocks standing on just one leg in the U.S., like PDD, Futu Holdings, and Vipshop, is dwindling. Many are also planning listings in Hong Kong. The trend is clear: everyone’s hedging their bets, and no one’s willing to go all-in on the U.S. market given the policy risks.

Fundraising has also cooled significantly in recent years. Since 2024, 88 Chinese companies have gone public in the U.S., raising just $4.4 billion. In the first three months of 2025, 27 new Chinese stocks listed—a 93% YoY surge—but they raised only $340 million, an 80% drop from the same period last year. While the number of listings looks high, these are mostly small-caps with little capital and even less influence. Aside from Bawang Tea 姬 this year, none of the newcomers are household names.

Since the 2022 U.S.-China audit standoff, the hurdles for Chinese companies listing in the U.S. have visibly increased. The U.S. has strict compliance requirements, including hiring U.S. auditors and potential audits. On the domestic front, companies must also clear the China Securities Regulatory Commission’s overseas listing filings. With regulators on both sides tightening the screws, the pressure to list in the U.S. is immense. Add to that the fact that state-owned enterprises have already delisted, leaving only private firms in the U.S. market. If the U.S. really pushes for "forced delisting," who would dare to list there?

The trend is clear: companies are pivoting to Hong Kong. The policy environment is friendly, the institutional advantages are obvious, integration with global capital markets is smoother, and talent is abundant. Simply put, Hong Kong has become the go-to gateway for Chinese companies entering global capital markets, and this position will only solidify further. If you’re investing in Chinese stocks, especially those listed solely in the U.S., keep a close eye on policy shifts—don’t get blindsided by sudden risks. Opportunities in the U.S. market still exist, but the policy-related risks are growing. Top companies are diversifying their risks, and we should learn to do the same.

The U.S. stock market is unpredictable and fraught with dangers—a single policy shift can catch you off guard. As Shelly always says, don’t put all your eggs in one basket, especially with U.S.-listed Chinese stocks. Betting one-sidedly is even riskier now. $NASDAQ Composite Index(.IXIC.US) $SPDR S&P 500(SPY.US) $Dow Jones Industrial Average(.DJI.US) $Alibaba(BABA.US) $BABA-W(09988.HK) $JD.com(JD.US) $PDD(PDD.US)