PDD - Pinduoduo Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
69.70
+3.43 (+5.18%)
At close: 4:00PM EDT

69.90 +0.20 (0.29%)
After hours: 7:59PM EDT

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Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close66.27
Open67.75
Bid69.75 x 1400
Ask69.87 x 1000
Day's Range67.60 - 73.17
52 Week Range19.11 - 73.17
Volume9,954,503
Avg. Volume8,742,459
Market Cap83.475B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-2.09
Earnings DateAug 19, 2020 - Aug 24, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est66.83
  • Alibaba Hunts for a Million Influencers Keen to Make Big Money
    Bloomberg

    Alibaba Hunts for a Million Influencers Keen to Make Big Money

    (Bloomberg) -- Alibaba Group Holding Ltd. pioneered the use of live-streaming hosts to sell everything from lipstick to smartphones in China. Now, the e-commerce giant wants to repeat that success globally with the help of a million influencers on forums from TikTok to Instagram.AliExpress, the company’s online marketplace for shoppers outside China, is on the hunt for social media personalities to hawk wares on its online malls around the world. It’s looking to attract more than 100,000 content creators this year to its recently launched AliExpress Connect, rising to over a million in three years. The platform offers a matchmaking service, helping pair social media influencers with brands and merchants looking to market their products. Its initial focus is Europe, where Russia, France, Spain and Poland comprise the majority of users.Alibaba hopes to replicate the success it’s enjoyed with so-called key opinion leaders driving sales on its China online marketplace Taobao. “For both Taobao and AliExpress, social content is a way to diversify offerings, but not to generate revenue,” Yuan Yuan, head of operations for AliExpress, told Bloomberg News. Influencers will help users stick with the platform instead of just making a one-time purchase. “The goal is to accumulate users, keep them there and encourage them to remain active.”China’s largest e-commerce company currently gets just a fraction of its retail revenue from outside its home country, but it’s harbored bigger international ambitions for years. The move marks Alibaba’s latest global push and comes at a time when Covid-19 is fueling an unprecedented boom in social media. The company’s rivals, including TikTok proprietor ByteDance Ltd. and Tencent-backed Pinduoduo Inc., are playing catch-up in live streaming and other means of social commerce championed by the Taobao Live app.Global social giants like Facebook Inc. have also added new features that support online shopping. In the U.S., more than 75 million social-network users aged 14 or older are expected to make at least one online purchase this year, up over 17% from 2019, according to research firm eMarketer.Influencers and content creators can sign up for Connect using TikTok, Instagram, Facebook and other social accounts. They can then solicit assignments from AliExpress merchants seeking help in promoting their goods or services. This gives the influencer options, from merely reposting the seller’s social media posts to creating original videos. Commission fees can be based on the sales the influencers generate.AliExpress is one of two Alibaba online bazaars for international buyers, the other being the Southeast-Asia-focused Lazada. AliExpress merchants are mainly small, export-oriented businesses in China, but global brands like Samsung and Oral-B have increasingly set up shop on the platform, targeting regional markets. Its top consumer markets include Russia, the U.S., Brazil and Spain.Yuan said AliExpress aims to help at least 100 of its army of a million influencers earn an annual income of more than $1 million within three years. “Only if they can make money will they be motivated to create good content for our platform,” she said.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.

  • These 4 Chinese Stocks Are Too Risky to Own
    Motley Fool

    These 4 Chinese Stocks Are Too Risky to Own

    Luckin Coffee and three other Chinese stocks could be in the blast zone of newly proposed regulations.

  • GuruFocus.com

    5 Companies Reach 52-Week Highs

    These stocks achieve annual milestone Continue reading...

  • Did Pinduoduo Just Prove the Bears Wrong?
    Motley Fool

    Did Pinduoduo Just Prove the Bears Wrong?

    Pinduoduo's (NASDAQ: PDD) stock recently surged to an all-time high after the company posted its first-quarter earnings. The Chinese e-commerce company's revenue rose 44% annually to 6.54 billion yuan ($924 million), beating estimates by $189 million but marking its slowest growth rate since its IPO.

  • Barrons.com

    Alibaba Gets a Wave of Bullish Notes from Wall Street. Why the Stock Could Be Attractive Again.

    FEATURE After Alibaba reported stellar earnings last week, the stock immediately headed south anyway, falling 6% on Friday. But investors seem to have had a change of heart over the long holiday weekend and on Tuesday, as the Street weighed in with a flurry of bullish analyst comments on the quarter, lifting earnings estimates and price targets.

  • MarketWatch

    Pinduoduo stock gets a downgrade after 45% surge in May

    U.S.-listed shares of Chinese e-commerce company Pinduoduo Inc. were the subject of a downgrade Sunday following their 45% surge thus far in May and their roughly 100% climb over the past three months. Jefferies analyst Thomas Chong lowered his rating on the stock to hold from buy while upping his price target to $62.50 from $40.30. "We consider that the positives are in the price following better than expected 1Q results," Chong wrote, as the company showed off improvements in its take rate and adoption of its online marketing services following some scaling back of spending due to COVID-19. He thinks the company now faces "high expectations" in the upcoming quarters. Its U.S.-listed shares have roughly doubled over the past three months, as the KraneShares CSI China Internet ETF has lost 0.9% and as the S&P 500 has dropped 5.2%.

  • CN¥405 - That's What Analysts Think Pinduoduo Inc. (NASDAQ:PDD) Is Worth After These Results
    Simply Wall St.

    CN¥405 - That's What Analysts Think Pinduoduo Inc. (NASDAQ:PDD) Is Worth After These Results

    Investors in Pinduoduo Inc. (NASDAQ:PDD) had a good week, as its shares rose 8.9% to close at US$68.70 following the...

  • Why This Chinese E-Commerce Stock Is Skyrocketing While Other Chinese Tech Stocks Are Tanking
    Motley Fool

    Why This Chinese E-Commerce Stock Is Skyrocketing While Other Chinese Tech Stocks Are Tanking

    Last week was a terrible one for Chinese tech stocks, as the U.S. Senate passed the Holding Foreign Companies Accountable Act (HFCA). If passed by the House of Representatives and then signed into law, the new act could mean Chinese stocks will be delisted from U.S. exchanges, should companies choose not to adhere to the law’s new requirements. The new rules would include certifying that the company is not controlled by a foreign government and would also allow an American audit firm to certify any listed company’s financials.

  • Alibaba Drops After Projecting Slowing Growth in Uncertain Times
    Bloomberg

    Alibaba Drops After Projecting Slowing Growth in Uncertain Times

    (Bloomberg) -- Alibaba Group Holding Ltd. slid after projecting revenue growth will slow this year, reflecting post-Covid 19 economic uncertainty at home as well as the potential for U.S.-Chinese tensions to disrupt its business.Its stock slid as much as 4% in Hong Kong Monday, after a drop of almost 6% in New York before the weekend. The e-commerce giant forecast sales growth this year of at least 27.5% to more than 650 billion yuan ($91 billion), down from 35% previously and slightly below analysts’ estimates. While it posted a better-than-expected 22% rise in March quarter revenue of 114.3 billion yuan, that marked its slowest pace of expansion on record.Online shopping began to bounce back from March, executives said Friday. But the tepid outlook demonstrates the world’s second-largest economy has yet to fully shake off Covid-19, with consumers still hesitant about spending on big-ticket items. Asia’s most valuable corporation is tackling also the rise of rivals such as ByteDance Ltd. and Pinduoduo Inc. And the Tmall operator is going head-to-head with Tencent Holdings Ltd. for internet leadership in everything from online media to payments and cloud computing. JD.com Inc., the No. 2 Chinese online retailer, forecast better-than-expected revenue this quarter.“The market is a bit disappointed despite the strength given 2Q guidance of 20-30% YoY growth for JD and 99% GMV growth in 1Q20 for PDD,” CICC analyst Natalie Wu wrote. “We regard Alibaba’s advantage as a market leader as intact and unchanged in the longer run, though it may take several quarters for market sentiment to swing back.”Read more: Alibaba Sales Growth Plumbs New Lows While Uncertainty EscalatesAlibaba has lost more than $70 billion of market value since the coronavirus first erupted in January, and now has to grapple with not just an uncertain global economic environment but also any potential fallout from U.S.-Chinese financial tensions. On Friday, executives sought to assuage concerns about a U.S. bill that mandates much closer accounting scrutiny of U.S.-listed Chinese companies and may bar them from American bourses.Chief Financial Officer Maggie Wu said Friday Alibaba’s financial statements have been consistently prepared in accordance with U.S. GAAP accounting measures and were beyond reproach. “The integrity of Alibaba’s financial statements speak for itself, we have been an SEC filer since 2014 and hold ourselves to the highest standard,” she told analysts on a conference call. “We will endeavor to comply with any legislation whose aim is to protect and bring transparency to investors who buy securities on U.S. stock exchanges.”The bigger short-term challenge is in reviving growth: Alibaba’s bread-and-butter customer management or marketing business grew just 3% in the March quarter. Much of that stems from weaker consumer sentiment during the coronavirus-stricken quarter, when total Chinese e-commerce rose just 5.9% or at less than a third of 2019’s pace, according to government data. Jefferies analysts led by Thomas Chong wrote that Alibaba’s guidance was in fact a positive when viewed against an array of uncertainties gripping the post-Covid 19 global economic environment.What Bloomberg Intelligence SaysUser engagement and transaction volume have rebounded in April and May to precrisis levels, which bodes well for normalized sales growth ahead, especially as merchant-support measures are gradually rolled back.\- Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.Rival PDD posted a revenue rise of 44% on Friday, down sharply from 91% in the previous quarter but ahead of expectations. Its sales and marketing expenses jumped 49%. PDD’s shares climbed 15% Friday.Alibaba’s March-quarter net income was 3.2 billion yuan, down 88% from a year ago when it booked an 18.7 billion yuan one-time gain on investments. In February, Alibaba declared a waiver of some service fees for merchants struggling financially during the outbreak on its main direct-to-consumer Tmall platform. In April, the company rolled out a new 10-billion-yuan subsidy program for Tmall users to buy electronics, encroaching on JD.com’s traditional turf. These initiatives may further compress margins for the June quarter.“The challenging part is for them to achieve the same amount of growth this year,” said Steven Zhu, a Shanghai-based analyst with Pacific Epoch. “Just because they are too big, for the same amount of growth, they need to spend much more effort.”But executives were confident in a gradual e-commerce recovery over the year. Beyond its main business, younger divisions such as its cloud computing arm should buoy the bottom line. That division’s revenue jumped 58% in the quarter.“Despite a challenging quarter due to reduced economic activities in light of the COVID-19 pandemic in China, we achieved our annual revenue guidance,” Wu said in a statement. “Although the pandemic negatively impacted most of our domestic core commerce businesses starting in late January, we have seen a steady recovery since March.”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.

  • Bloomberg

    Baidu Investors Fell Out of Love Years Ago

    (Bloomberg Opinion) -- Five years ago, Baidu Inc. founder and Chairman Robin Li sat down with Bloomberg News to explain how foreign investors were getting it wrong.Listed on the Nasdaq a decade earlier, shares of the Chinese search-engine provider had taken a beating over the prior year, and Li’s chief complaint was that Americans just didn’t appreciate the coming changes in its business. The trend in China was toward services like delivery and ride-hailing, as well as bookings for restaurants, beauty salons and doctors. This online-to-offline economy would eclipse search revenue, he predicted.Now, it seems that Li has lost patience. Baidu is looking into the possibility of delisting its shares from the Nasdaq and moving to an exchange closer to home, Reuters reported Friday, citing three people familiar with the matter. Baidu thinks it’s undervalued, according to the report.The backdrop to these discussions is rising hostility to U.S. investments in Chinese assets amid worsening relations between the two countries. The U.S. Senate passed a bill last week that would force companies to delist unless they can prove they’re not under the control of a foreign government.That sounds like a good excuse for Baidu to look for the exit. The reality is that investors lost patience with its management years ago. It was inevitable that the company would seek one day to list elsewhere, as Alibaba Group Holding Ltd. has already done. Baidu’s U.S.-traded stock fell 15% between that September 2015 interview and the end of last year, before the pandemic hit. Over the same period, Alibaba climbed 248%.Li’s problem is that his company failed to grasp the transformation he was talking up half a decade ago. While Alibaba and Tencent Holdings Ltd. have successfully moved into new areas like payments and physical retail, and upstarts like Meituan Dianping and Pinduoduo Inc. now dominate delivery and social-commerce, Baidu has barely changed.Its core business still centers on advertising and accounts for 73% of revenue, which climbed just 2% last year. Investments into new realms like artificial intelligence and autonomous driving have yet to bear fruit. Its other major sales contributor, iQiyi Inc., a video-streaming platform that listed separately on Nasdaq in March 2018, continues to lose money.Around the time that Li complained foreign investors weren’t getting it, some of his contemporaries decided to move home where they felt Chinese investors had a better understanding and would reward them with higher valuations. Internet security company Qihoo 360 Technology Co. was taken private by a consortium that included Citic Group for $9.3 billion in December 2015. It relisted in Shanghai in 2018 via the purchase of elevator maker SJEC Corp., and now trades under the name 360 Security Technology Inc. Chinese investors have soured on 360 Security, pushing the company’s market value down by more than a third since February. There’s a warning for Li. Investors in China won’t assign a higher valuation to a returning company unless it has a convincing growth story to tell. Baidu was a pioneer when it listed on Nasdaq in 2005, paving the way for dozens of Chinese internet stocks to follow. Touted as the Google of China, it symbolized the potential of the sector for American investors. Those days are long gone: Baidu has been eclipsed as China’s technology darling by fasting-growing companies such as Alibaba and Tencent.The problem for Li isn’t that investors don’t understand his business. It may be that they understand it too well.  This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.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.

  • Alibaba Earnings Top Expectations In Difficult Coronavirus Conditions
    Investor's Business Daily

    Alibaba Earnings Top Expectations In Difficult Coronavirus Conditions

    Alibaba stock reported quarterly results before the market open Friday that beat estimates as total gross merchandise volume for the year hit a record $1 trillion. Alibaba stock was down.

  • Pinduoduo Earnings Mixed As Gross Merchandise Volume Doubles
    Investor's Business Daily

    Pinduoduo Earnings Mixed As Gross Merchandise Volume Doubles

    China e-commerce company Pinduoduo reported mixed first-quarter results before the market open Friday, as gross merchandise volume doubled and solidly beat Wall Street revenue estimates.

  • Here's Why Pinduoduo Stock Headed Higher on Friday
    Motley Fool

    Here's Why Pinduoduo Stock Headed Higher on Friday

    Shares of Chinese e-commerce giant Pinduoduo (NASDAQ: PDD) headed higher on Friday after the company reported unaudited results for the first quarter of 2020. Investors are celebrating Pinduoduo's across-the-board growth, despite the quarter running through the worst of the COVID-19 outbreak in China. By contrast, the outbreak started much earlier in China, affecting much of Pinduoduo's Q1.

  • Pinduoduo Inc (PDD) Q1 2020 Earnings Call Transcript
    Motley Fool

    Pinduoduo Inc (PDD) Q1 2020 Earnings Call Transcript

    On today's call, our CEO, Colin Huang, will make some general remarks on our performance for the first quarter of 2020, on the COVID-19 implication on our industry, our business and our team. Before we begin, I'd like to remind you that this conference contains forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended and as defined in the US Private Securities Litigation Reform Act of 1995.

  • Alibaba Sales Growth Plumbs New Lows While Uncertainty Escalates
    Bloomberg

    Alibaba Sales Growth Plumbs New Lows While Uncertainty Escalates

    (Bloomberg) -- Alibaba Group Holding Ltd. expects revenue growth to slow this year, reflecting post-Covid 19 economic uncertainty at home as well as the potential for U.S.-Chinese tensions to disrupt its business.The e-commerce giant forecast sales growth this year of at least 27.5% to more than 650 billion yuan ($91 billion), down from 35% previously and slightly below analysts’ estimates. While it posted a better-than-expected 22% rise in March quarter revenue of 114.3 billion yuan, that marked its slowest pace of expansion on record. Alibaba’s shares slid more than 5% in New York.Online shopping began to bounce back from March, executives said Friday. But the tepid outlook demonstrates the world’s second largest economy has yet to fully shake off Covid-19, with consumers still hesitant about spending on big-ticket items. Asia’s largest corporation is tackling also the rise of rivals such as ByteDance Ltd. and Pinduoduo Inc. And the Tmall operator is going head-to-head with Tencent Holdings Ltd. for internet leadership in everything from online media to payments and cloud computing.Alibaba has lost more than $40 billion of market value since the coronavirus first erupted in January, and now has to grapple with not just an uncertain global economic environment but also any potential fallout from U.S.-Chinese financial tensions. On Friday, executives sought to assuage concerns about a U.S. bill that mandates much closer accounting scrutiny of U.S.-listed Chinese companies and may bar them from American bourses.Chief Financial Officer Maggie Wu said Alibaba’s financial statements have been consistently prepared in accordance with U.S. GAAP accounting measures and were beyond reproach. “The integrity of Alibaba’s financial statements speak for itself, we have been an SEC filer since 2014 and hold ourselves to the highest standard,” she told analysts on a conference call. “We will endeavor to comply with any legislation whose aim is to protect and bring transparency to investors who buy securities on U.S. stock exchanges.”The bigger short-term challenge is in reviving growth: Alibaba’s bread-and-butter customer management or marketing business grew just 3% in the March quarter. Much of that stems from weaker consumer sentiment during the coronavirus-stricken quarter, when total Chinese e-commerce rose just 5.9% or at less than a third of 2019’s pace, according to government data.Rival PDD posted a revenue rise of 44% on Friday, down sharply from 91% in the previous quarter, although that still beat expectations. Its sales and marketing expenses jumped 49%.Alibaba’s net income was 3.2 billion yuan, down 88% from a year ago when it booked an 18.7 billion yuan one-time gain on investments. In February, Alibaba declared a waiver of some service fees for merchants struggling financially during the outbreak on its main direct-to-consumer Tmall platform. In April, the company rolled out a new 10-billion-yuan subsidy program for Tmall users to buy electronics, encroaching on JD.com Inc.’s traditional turf. These initiatives may further compress margins for the June quarter.“The challenging part is for them to achieve the same amount of growth this year,” said Steven Zhu, a Shanghai-based analyst with Pacific Epoch. “Just because they are too big, for the same amount of growth, they need to spend much more effort.”But executives were confident in a gradual e-commerce recovery over the year. Beyond its main business, younger divisions such as its cloud computing arm should buoy its bottom line. That division’s revenue jumped 58% in the quarter.“Despite a challenging quarter due to reduced economic activities in light of the COVID-19 pandemic in China, we achieved our annual revenue guidance,” Wu said in a statement. “Although the pandemic negatively impacted most of our domestic core commerce businesses starting in late January, we have seen a steady recovery since March.”What Bloomberg Intelligence SaysThe company’s businesses most impacted by merchant and logistic disruptions are also its most lucrative, such as retail marketplaces Taobao and Tmall, while faster-growing segments like cloud computing and digital entertainment don’t contribute to profit. Subsidies for users and merchants will add to costs. Alibaba may provide an improved growth outlook for the June quarter given the retreat of the pandemic in China, but the recovery could be gradual as consumption sentiment remains weak.\- Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.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.

  • Dow Jones Futures Turn Higher As Vaccine Hopes Lift Coronavirus Market Rally; Alibaba Earnings Beat Views
    Investor's Business Daily

    Dow Jones Futures Turn Higher As Vaccine Hopes Lift Coronavirus Market Rally; Alibaba Earnings Beat Views

    Futures pared losses as Dr. Anthony Fauci said Moderna vaccine data was hopeful. Despite Thursday's fall, the market rally is up solidly this week. Alibaba and Nvidia earnings easily beat.

  • Pinduoduo beats revenue estimates as online shopping demand soars
    Reuters

    Pinduoduo beats revenue estimates as online shopping demand soars

    It took PDD only five years to raise the number above 600 million, further narrowing the gap with competitor Alibaba Group that reported on Friday that annual active consumers reached 726 million by end of March.

  • GlobeNewswire

    Pinduoduo Announces First Quarter 2020 Unaudited Financial Results

    SHANGHAI, China, May 22, 2020 -- Pinduoduo Inc. ("Pinduoduo" or the "Company") (NASDAQ: PDD), an innovative and fast growing technology platform and one of the leading Chinese.

  • Alibaba Stock Dips Below Buy Zone Ahead Of Quarterly Earnings
    Investor's Business Daily

    Alibaba Stock Dips Below Buy Zone Ahead Of Quarterly Earnings

    Two of China's largest e-commerce companies, Alibaba and Pinduoduo, report quarterly results early Friday, as online sales in that country are showing signs of returning to normal levels.

  • BofA Downgrades Pinduoduo On Monetization Concerns
    Benzinga

    BofA Downgrades Pinduoduo On Monetization Concerns

    Pinduoduo Inc - ADR (NASDAQ: PDD) is scheduled to report first-quarter results Friday.While the Chinese e-commerce company company is likely to report its topline numbers broadly in-line with expectations, there are concerns surrounding monetization and profits, according to BofA Securities.The Pinduoduo Analyst Joyce Ju downgraded Pinduoduo from Buy to Neutral and raised the price target from $48.40 to $64.The Pinduoduo Thesis A strong recovery in consumer demand has occurred since March following the coronavirus outbreak, and this is likely to have propelled Pinduoduo's first-quarter performance, Ju said in the Wednesday downgrade note.The analyst expects the company to report 40% year-on-year growth in gross merchandise value to 213 billion yuan ($31 billion) and 11% growth in revenue to 5 billion yuan.Pinduoduo's monetization rate is likely to have declined from 2.9% to 2.4% quarter-over-quarterand from 3% in the first quarter of 2019 due to traffic support and subsidy to merchants, she said. View more earnings on PDDThe company's sales and marketing expenses are likely to have risen to 125% of revenues, up from 86% in the previous quarter and 108% in the first quarter of 2019, mainly due to lower monetization and epidemic-related subsidies, Ju said. While traffic data indicates a reacceleration in user and engagement trends in April, the analyst expressed concern around the company's monetization rate and profits as well as its ability to generate faster revenue growth due to competition from Alibaba Group Holding Ltd (NYSE: BABA) and JD.Com Inc (NASDAQ: JD).PDD Price Action Shares of Pinduoduo were down 3.47% at $60.90 at the close Wednesday. Related Links: Benzinga's Top Upgrades, Downgrades For May 20, 2020Option Traders Betting Big On Pinduoduo Following Latest Trade Negotiation NewsLatest Ratings for PDD DateFirmActionFromTo May 2020B of A SecuritiesDowngradesBuyNeutral Apr 2020KeyBancMaintainsOverweight Apr 2020Credit SuisseUpgradesNeutralOutperform View More Analyst Ratings for PDD View the Latest Analyst RatingsSee more from Benzinga * CSX Is Set For Recovery In 2021, UBS Says In Upgrade * Analyst Shares Thoughts On cbdMD's Q2 Earnings: 'Sustainable Ongoing Operation' * Cantor Upgrades Green Thumb Industries On Fundamentals, Relative Valuation(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Bloomberg

    China Inc. Is Unloved Abroad, Unwanted at Home

    (Bloomberg Opinion) -- Just like the tens of millions of migrant workers stranded by China’s coronavirus lockdowns, hundreds of mainland companies listed in the U.S. are stuck, unable to go home and without a future in their adopted land. They make perfect prey for short sellers.The climate in the U.S. is getting uncomfortable for China Inc. President Donald Trump has renewed his trade-war rhetoric while pointing fingers at Beijing for the Covid-19 outbreak. On Monday, his administration asked a government pension fund to block investment in Chinese stocks. Meanwhile, the spectacular admission that Luckin Coffee Inc., the upstart rival to Starbucks Corp., faked its sales figures has ripped open age-old doubts about accounting standards.Unfortunately, even if these businesses wanted to prove they’re fraud-free, Beijing’s new securities law forbids cooperation with U.S. regulators.Unlike most other nations, China doesn’t allow the Public Company Accounting Oversight Board — an auditor of auditors, set up after the Enron scandal — to inspect the work papers of its U.S.-listed companies. The Securities and Exchange Commission has issued warnings about the quality of these reviews, even when the industry’s biggest names are signing the annual reports (as was the case with Luckin). SEC Chairman Jay Clayton singled China out in a public statement late last month.The SEC has good reason to be annoyed, as Beijing’s tough stance has only hardened with a new law that took effect in March. Item 177 states that overseas regulators can’t directly inspect or collect evidence on Chinese soil. In addition, domestic companies aren’t allowed to provide any relevant supporting documents without permission. As a result, the cloud of suspicion over these businesses will only grow darker. Even the most well-meaning among them won’t be able to prove otherwise.Going home was always the grand slogan whenever China Inc. felt mistreated or undervalued abroad. The nation’s stock frenzy in the first half of 2015 saw a wave of take-private deals, to the tune of $24 billion, as companies trading in New York rushed to go public in Shanghai or Shenzhen. The timing seems ripe again, especially now that mainland exchanges and Hong Kong both allow secondary listings.But there’s a new problem: China doesn’t want these companies back. Its bourses’ secondary listing requirements rule out most small caps. Hong Kong, for instance, demands that companies need to already have a market cap over $5.2 billion, or barring that, $129 million in annual sales and a market cap of at least $1.3 billion.As for China, secondary listing rules released last month are intriguing. Beijing relented on its obsession with blue chips — the required market cap was lowered to $2.8 billion from $28 billion. There’s a catch, though. Smaller companies must have “independent research,” “world-leading technology” and an “edge” in their field. In other words, don’t bother if you’re sub-scale. The likes of e-commerce retailer Vipshop Holdings Ltd., online dating app Momo Inc. or after-school education provider New Oriental Education & Technology Group Inc. can stay put. What China wants is hard tech that spends millions on research and specializes in semiconductors and artificial intelligence.Alibaba Group Holding Ltd. has become the face of China for retail investors in New York, while e-commerce operator Pinduoduo Inc. and social video site Bilibili Inc. have become hedge fund playthings. Yet hundreds of more obscure names list in the U.S. Of the 335 stocks, only 27 have a market cap of more than $2.8 billion, data compiled by Bloomberg show, and most would still need to pass Beijing’s “edge” test. As for Hong Kong, less than 40 stocks are eligible for a dual listing.Will Beijing allow hundreds of its companies stranded overseas to languish? You bet. If you can’t make it in New York, Shanghai isn’t for you either, the thinking goes. As China looks to build its FANG equivalent — the big names that give the U.S. tech supremacy — more obscure mainland rivals will be forgotten. Except, of course, by short sellers.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.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.

  • Can You Imagine How Jubilant Pinduoduo's (NASDAQ:PDD) Shareholders Feel About Its 148% Share Price Gain?
    Simply Wall St.

    Can You Imagine How Jubilant Pinduoduo's (NASDAQ:PDD) Shareholders Feel About Its 148% Share Price Gain?

    The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. On the other hand, if you...

  • GlobeNewswire

    Pinduoduo to Report First Quarter 2020 Unaudited Financial Results on May 22, 2020

    Pinduoduo Inc. (“Pinduoduo”) (PDD), an innovative and fast growing technology platform and one of the leading Chinese e-commerce players, today announced that it will report its unaudited financial results for the first quarter ended Mar. 31, 2020, before U.S. markets open on Friday, May 22, 2020. The Pinduoduo mobile platform offers a comprehensive selection of attractively priced merchandise, featuring a dynamic social shopping experience that leverages social networks effectively.

  • Ken Fisher's Top 5 1st-Quarter Buys
    GuruFocus.com

    Ken Fisher's Top 5 1st-Quarter Buys

    Guru’s largest new position is Advanced Micro Devices Continue reading...