What happened?Nearly 200 Chinese companies have their stocks in red. This is because regulators in China cracked down on many U.S.-listed Chinese stocks. Full Truck Alliance (NYSE.YMM) is among the worst hit, with a drop of over 20% in morning trading. Kanzhun and UP Fintech Holding are also down 11% and Bilibili (NASDAQ.BILI) is off nearly 7% today.What are you waiting for?Many of the stock affected by the crackdown include recent U.S.IPOs like Full Truck, Kanzhun and DiDi Global (NYSE.DIDI), which is the parent company to Chinese ridesharing giant DiDi Chuxing. This morning, the app was removed from all app stores in the US, resulting in a 23% drop.Regulators are worried about security risks. This sounds very similar to the complaints made against TikTok owner ByteDance last January by U.S. Trade officials. It could be more to do with trade tensions between the countries, as many stocks have just had their first public offering.What are you waiting for?Kanzhun and Full Truck Alliance are under investigation by regulators following the listing of their stocks in the U.S. While UP Fintech, Bilibili and Bilibili are collateral damage caused by the downdraft.This could also make it more difficult for other Chinese-based companies to list with the U.S. For fear of further crackdowns on these stocks, investors might not rush to get in.
