By mid-morning, NetEase had withdrawn a portion of its profits, with the latest turnover of 8% at about $ 133 ($ 17).
But the company has also made it clear in stock market declarations that it thinks the United States could become hostile to Chinese companies as regulators and lawmakers see new rules that would lead to tighter oversight. Some restrictions might even make it harder to advertise or keep a store in New York.
U.S. Secretary of State Mike Pompeo praised the Nasdaq last week for proposing new compliance rules that could affect Chinese companies, adding that similar stock exchanges should consider similar regulations.
“U.S. investors should not be exposed to hidden and unnecessary risks associated with companies that do not adhere to the same rules as U.S. companies,” Pompeo said in a statement. “Nasdaq’s action should serve as a model for other exchanges in the United States and around the world.”
Nasdaq switched to delist Luckin after the Chinese coffee chain admitted that a significant portion of revenue was made last year. Luckin appealed the decision, and its shares continued to trade. Its stocks are 90% lower annually.