Chinese Tech Struggles, E-Minis Recover From Early Asia Lows

Chinese tech names were pressured on the back of confirmation that Didi Global has started preparations re: the withdrawal of its listing on U.S. stock exchanges, with the firm set to start work on a Hong Kong listing. This came after recently reported pressure on the co. from Chinese regulators re: delisting in the U.S. Elsewhere, the same space was pressured by Thursday’s move from the SEC, whereby the Commission outlined its final plan re: mandating foreign firms when it comes to opening their books to U.S. scrutiny or risk forced delisting from the NYSE & NASDAQ. The Hang Seng Tech Index hovers just above its YtD low as a result.

• Elsewhere, troubled Chinese property developer Kaisa saw bondholders turn down its debt swap proposal, inching the company closer to default.
• Still, among the 4 major regional equity indices, it is only the Hang Seng that is lower on the day, with the Nikkei 225, CSI 300 and ASX 200 all registering incremental gains as of typing.
• E-minis have recovered almost all of their early losses and essentially trade flat as we move towards European hours. The space was initially pressured by the discovery of fresh Omicron pockets in several U.S. states, but continued uncertainty re: the mortality threat posed by the COVID variant and the passage of a stopgap spending bill through Congress, which will prevent an impending government shutdown, facilitated a rally from worst levels of the day.