Hong Kong market drops after SEC hints at delisting some Chinese stocks
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Hong Kong's Hang Seng Index closed down 1.6% after the U.S. Securities and Exchange Commission named five China-based companies that could be delisted if they don't allow U.S. authorities to review company audits for three straight years.
That followed a selloff of U.S.-listed Chinese shares, especially in tech names, on Thursday. KraneShares CSI China Internet ETF (NYSEARCA:KWEB) fell 9.8% and KraneShares MSCI All China Index ETF (NYSEARCA:KALL) slid 2.7% in Thursday trading.
KE Holdings (NYSE:BEKE), a real estate-focused fintech, dropped 24% and fintech Futu Holdings (NASDAQ:FUTU) fell 16% in regular trading in New York on Thursday. 
In the U.S., many Chinese stocks are poised for a positive open. JD.com (NASDAQ:JD), which sank 16% on Thursday, was up 4.0% in premarket. Futu (FUTU), which reported earnings on Friday, is gaining 5.7% premarket. Yum China Holdings (NYSE:YUMC), one of the stocks named by the SEC, fell 11% on Thursday, but is rising 1.4% before Friday's bell rings.
Not all U.S. listed Chinese firms are headed for gains today. DiDi Global's (NYSE:DIDI) are dropping 13% in premarket trading. BeiGene (NASDAQ:BGNE), another name on the SEC's list, is down 0.7% in U.S. premarket.
Previously (Dec. 21), SEC wants more disclosure for Chinese companies that want to list in U.S.