The U.S. Senate approved a bill Wednesday that lead to the delisting of Chinese companies from U.S. stock exchanges.
The China Legislation
The bill requires Chinese companies to establish that they are not owned or controlled by a foreign government.
Why It's Important For Chinese Companies
The new legislation could deter Chinese companies from listing shares on U.S. exchanges and raising money from U.S. investors. Several China-based stocks fell on the news.
Alibaba Group Holding (NYSE: BABA) shares were trading down 1.4% at $214.55 on Wednesday. The stock has a 52-week high of $231.14 and a 52-week low of $147.95.
Baidu (NASDAQ: BIDU) shares were trading down 1.4% at $108.21. The stock has a 52-week high of $147.38 and a 52-week low of $82.
JD.Com Inc (NASDAQ: JD) shares were trading down 0.55% at $53.96. The stock has a 52-week high of $56.50 and a 52-week low of $25.48.
The bill next heads to the Democratic-controlled House of Representatives for consideration.