The U.S. government is advancing plans to potentially remove Chinese companies from American stock exchanges. This development comes amidst ongoing trade tensions between the U.S. and China and increasing support within the Republican Party to take such action.
As incoming SEC chairman, Paul Atkins is expected to play a crucial role in overseeing the potential delisting process. The move is part of a broader strategy to exert pressure on China and address concerns over financial transparency and regulatory compliance of Chinese firms trading in the U.S.
Several high-profile Chinese companies could be impacted by this decision, including major players like Alibaba (BABA, Financial), Yum China (YUMC), Tencent (TCEHY), NetEase (NTES), Pinduoduo (PDD), Nio (NIO), Baidu (BIDU), and JD.com (JD). The potential delisting would significantly affect these companies' access to U.S. capital markets and might compel them to seek alternative listing venues.
The advancement of this initiative reflects a growing appetite among U.S. policymakers to recalibrate economic ties with China, highlighting the increasing intersection of finance and international trade conflicts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 38 analysts, the average target price for Alibaba Group Holding Ltd (BABA, Financial) is $159.53 with a high estimate of $192.60 and a low estimate of $94.00. The average target implies an upside of 53.04% from the current price of $104.25. More detailed estimate data can be found on the Alibaba Group Holding Ltd (BABA) Forecast page.
Based on the consensus recommendation from 43 brokerage firms, Alibaba Group Holding Ltd's (BABA, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Alibaba Group Holding Ltd (BABA, Financial) in one year is $107.55, suggesting a upside of 3.17% from the current price of $104.245. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Alibaba Group Holding Ltd (BABA) Summary page.
