A series of stock market flops by Chinese companies that have listed in the US has heightened concerns over standards of corporate governance, particularly in the wake of Luckin Coffee’s implosion last month.
Shares in the 29 Chinese companies that listed on the New York Stock Exchange since the start of 2017 have fallen by an average of 16 per cent since they went public, according to Dealogic data. Non-Chinese companies listed on the exchange, meanwhile, are down less than 3 per cent over the same period.
Chinese companies quoted on the tech-focused Nasdaq market have performed even worse, falling almost 29 per cent on average. That compares with a gain of nearly 22 per cent for non-Chinese companies over the past few years on the same exchange.