Full Truck Alliance (YMM) saw its stock plummet 5.49% in pre-market trading on Monday, as U.S. lawmakers intensify efforts to remove Chinese companies from American stock exchanges over alleged military ties. The sharp decline comes amid broader concerns about the future of Chinese firms listed in the United States.
The sell-off was triggered by news that two U.S. Congressional committees have urged the Securities and Exchange Commission (SEC) to delist several Chinese companies, including Full Truck Alliance. House China Committee Chair John Moolenaar and Senate Aging Committee Chair Rick Scott sent a letter to SEC Chairman Paul Atkins, requesting action against 25 listed Chinese firms they claim are connected to China's military and pose a threat to national security.
The lawmakers argue that China's military-civil integration policies and legal structure obscure the level of state control in these companies, increasing financial risk for American shareholders. They are pushing the SEC to use its enforcement tools under the Holding Foreign Companies Accountable Act to stop trading or force delisting for non-compliant companies. As investors digest this news, the uncertainty surrounding the future of Chinese stocks on U.S. exchanges appears to be weighing heavily on Full Truck Alliance and its peers.
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