Nasdaq Today: Baidu, NetEase Stocks Fall on Delisting Fears
Major benchmarks were modestly lower on Friday morning, with most investors still showing some worry about the fragile state of the U.S. economy in the wake of the coronavirus pandemic. The Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 0.25% shortly after 11:30 a.m. EDT, faring somewhat better than the broader market in a familiar pattern. The Nasdaq 100 of larger Nasdaq-listed stocks fell by a similar percentage.
However, the news for Nasdaq 100 components Baidu (NASDAQ: BIDU) and NetEase (NASDAQ: NTES) wasn't as good, as both stocks posted much larger losses of 5% to 6%. At issue is a movement that's picking up steam, aimed at keeping Chinese companies from remaining listed on U.S. stock exchanges. After some recent fraud issues, the move is understandable, but shareholders in these two major stocks aren't happy about the ramifications.
Washington has had a tough relationship with Beijing for years now, with issues ranging from trade disputes and tariffs to mishandling of intellectual property. Lawmakers have sought ways to protect U.S. companies from adverse business practices in China, but their lack of progress has made some impatient to take more aggressive action.
Source Fool.com
