U.S.-listed Chinese companies traded lower in early trading on Friday on a Reuters report that the U.S. Securities and Exchange Commission (SEC) has stopped processing registrations of U.S. initial public offerings (IPOs) and other sales of securities by Chinese companies.
JD's (NASDAQ: JD) stock surged 150% last year as the Chinese e-commerce giant delivered quarter upon quarter of dazzling growth. It might seem unfair for JD to be crushed alongside those other stocks. After all, JD wasn't hit by an antitrust probe and record fine like its rival Alibaba (NYSE: BABA).
Shares in JD.com, Inc. (NASDAQ:JD) have fallen this week along with most US listed Chinese stocks, and specifically those in the technology and education sectors. The sell-off follows a series of regulatory changes that have been imposed on several companies. There are wide ranging opinions on what China's government is trying to do, but the common theme appears to be increased control of technology driven companies.