|Bid||461.50 x 1000|
|Ask||479.99 x 800|
|Day's Range||461.32 - 474.56|
|52 Week Range||235.01 - 503.27|
|Beta (5Y Monthly)||0.75|
|PE Ratio (TTM)||69.95|
|Earnings Date||Aug 05, 2020 - Aug 10, 2020|
|Forward Dividend & Yield||4.64 (0.96%)|
|Ex-Dividend Date||Jun 11, 2020|
|1y Target Est||473.44|
Opportunities to profit in IPOs and other Chinese stocks could recede under a new Trump policy and growing U.S.-China tensions. TikTok and Alibaba's Ant Group are just two examples.
(Bloomberg Opinion) -- The U.S. threat to delist Chinese companies just got a lot more real. Yet businesses from Asia’s biggest economy continue to line up to sell shares on American exchanges — and are thriving. What’s going on?The President’s Working Group on Financial Markets has told U.S. exchanges to set rules that would require companies to grant American regulators access to their audit work papers, something that China has refused to allow. Firms already listed will have until Jan. 1, 2022, to comply, with removal from U.S. exchanges the ultimate penalty. Those seeking to sell shares will need to adhere to the new rules, according to the high-powered group of U.S. regulators, which includes Treasury Secretary Steven Mnuchin.You might think this ratcheting up of pressure, which reflects increasing geopolitical tensions and the fallout from accounting scandals at Chinese companies such as Luckin Coffee Inc., would put a damper on the rush of enterprises looking to go public. Anything but. Almost every day, it seems, another Chinese company announces plans to list in the U.S. — and they’re finding no shortage of takers. Late last month, Beijing-based electric-car maker Li Auto Inc. raised $1.1 billion selling shares in an initial public offering that priced above the marketed range. It was the biggest IPO by a Chinese company in New York since Shanghai-based rival NIO Inc. sold $1.15 billion of stock in September 2018. Xpeng Motors, based in Guangzhou, is poised to follow this month.Shares of U.S.-listed Chinese companies are also outperforming the broader market. The Nasdaq Golden Dragon China Index has surged 30% this year, compared with a 3.7% gain for the S&P 500.The phenomenon may be partly the product of a craze in day-trading fueled by pandemic lockdowns, which have left many Americans stuck at home looking for amusement. If the Robinhood crowd can drive shares of bankrupt companies to illogical heights, then why not Chinese stocks, too?On a more rational level, some investors may be betting that threats to delist Chinese companies are largely noise, and a compromise will eventually be worked out. Chinese listings are a gravy train for the New York Stock Exchange and Nasdaq, and both sides have a financial interest in ensuring that it doesn't get derailed.On this point, it’s worth noting that the U.S. regulators left some wiggle room. Chinese companies can hire a “co-auditor,” effectively having a second inspection performed by a U.S. accounting firm after a Chinese affiliate does the first. That would be a potential workaround for Beijing’s rules that prevent the Public Company Accounting Oversight Board from reviewing audits of U.S.-listed Chinese companies.To count on peace breaking out may be rash, though. There’s plenty of evidence that the move toward a U.S.-China decoupling is serious and tangible. Just look at the lengthening list of U.S.-traded Chinese companies that are selling shares in Hong Kong, giving them a secondary outlet into international capital markets in the event that they are forced to leave: Alibaba Group Holding Ltd., JD.com Inc. and NetEase Inc. among them.Or witness Tencent Holdings Ltd., which lost $30 billion of market value in Hong Kong on Friday after the Trump administration moved to ban U.S. residents from doing business via its WeChat app. It will be a brave investor who bets on this trend reversing itself. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Oil futures fell for the fist time in a week as uncertainty over an economic recovery in the U.S. that could boost fuel consumption offset signals of tightening global supply.Investors are awaiting an employment report out of the U.S. on Friday, with forecasts pointing to a slowdown in job gains last month, or worse. Meanwhile, Iraq will cut production in August by an additional 400,000 barrels a day to compensate for missing its production target in previous months, the state oil-marketing organization Somo said.“There’s a dialogue developing here that the jobs report could show no job creation, it could be a negative number,” said Bob Yawger, director of the futures division at Mizuho Securities USA. “And if that’s the case, that’s a horrible demand indicator for crude oil.”In what may be the last remaining hope for spurring U.S. demand in the waning days of the summer driving season, Democrats and Republicans are trying to push forward a virus relief package. President Donald Trump said he expects to sign orders on Friday or Saturday extending enhanced unemployment benefits and imposing a payroll tax holiday.Iraq’s pledge to further reduce output comes as Saudi Arabia cut pricing to Asia and Europe less than expected and left prices for the U.S. unchanged at the highest levels in months.Oil futures in New York pulled back after testing the upper bound of their recent trading range, where they’ve struggled to rally far beyond $40 a barrel. U.S. crude stockpiles falling for two straight weeks and a weaker dollar have provided support for prices, but rising coronavirus cases are continuing to weigh on sentiment. The drop in U.S. gasoline demand is going to get worse, according to Standard Chartered Plc, with analysts saying the decline in August from year-ago levels will get steeper.“Gasoline demand remains subdued,” said John Kilduff, a partner at Again Capital LLC. “Even when you get some rays of hope, there’s still this weight on the market that’s going to prevent the gains from holding up.”In physical markets, Mars Blend, a high-sulfur crude, rose to as much as $1.35 a barrel above Nymex WTI futures this week, the widest premium in roughly a month, but has eased off slightly in the last three sessions. Heavy Louisiana Sweet crude climbed 25 cents to $1.60 a barrel over Nymex oil futures on Thursday, the largest premium in almost two weeks.(An earlier version of this story corrects price of Heavy Louisiana Sweet crude)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.