Alibaba and other Chinese stocks plummet after the SEC identifies 5 companies for potential delisting [BI via Yahoo!]
Popular Chinese stocks like Alibaba plunged as much as 10% on Thursday after the regulatory agency identified five Chinese companies for potential delisting from US exchanges due to inadequate disclosures.
The five companies identified by the SEC were BeiGene, Yum China Holdings, Zai Lab Limited, ACM Research, and HUTCHMED Limited. Shares of Yum China, which owns the franchise rights to KFC and Taco Bell in China, fell as much as 15% following the SEC notice.
Risk of a US recession as high as 35%, Goldman Sachs says [CNN Business]
Goldman Sachs has downgraded its forecast for US economic growth in 2022. It now sees little to no growth during the first three months of the year…. "Rising commodity prices will likely result in a drag on consumer spending, as households — and lower-income households in particular — are forced to spend a larger share of income on food and gas," they told clients on Thursday.
As SPAC Bubble Burst, Hedge Funds Doubled Their Holdings [II]
Hedge funds, nicknamed the “SPAC Mafia” because they are the dominant buyer of SPAC IPO shares and warrants, owned only $82.4 billion at the end of 2020, according to SPAC Research, a data provider…. Marshall Wace is among those that bulked up on SPACs during the year. The London-based hedge fund is now the top SPAC owner among hedge funds, holding almost $5.28 billion — up from less than $1 billion at the end of 2020, according to SPAC Research. It bought almost $1 billion of SPACs during the fourth quarter.
The Labor Department wants to investigate crypto in retirement plans. [NYT]
The department did not go as far as banning crypto-related investments from workplace retirement plans, which held $6.2 trillion on behalf of 91 million 401(k) participants in 2019. But the department, which oversees workplace retirement offerings, said it had grave concerns about including these emerging digital options on 401(k) investment menus…. “Cryptocurrencies are very different from typical retirement plan investments,” the Labor Department said in the compliance document, “and it can be extraordinarily difficult, even for expert investors, to evaluate these assets and separate the facts from the hype.”
Justice Dept. names a director to pursue cases of Covid-19 relief fraud. [NYT]
The decision to name a prosecutor to go after stimulus fraud comes on the heels of President Biden’s State of the Union address, where he pledged to go after “criminals who stole billions in relief money….” [Kevin] Chambers will focus on “large-scale criminal enterprises and foreign actors” who have abused the money. Those efforts will include establishing “strike teams” ahead of the department’s next phase of tackling pandemic fraud.
Citigroup Markets Executive Leaves to Launch Fintech Investment Fund [WSJ]
[Dan] Keegan held several roles helping build up Citigroup’s equities-trading business over 15 years. Most recently, he was the head of all North American markets, a statesmanlike role serving as the bank’s representative to top clients…. He pushed new technology for trading operations. He has also been part of the response to regulatory orders issued in late 2020 pushing Citigroup to improve its internal systems, an expansive effort the bank is betting on technology to help.
Elon Musk Has Sold Seven Homes for Nearly $130 Million After Vowing to ‘Own No House’ [WSJ]
He purchased the homes between December 2012 and January 2019 for a total of $102 million.
Between June 2020 and November 2021, Mr. Musk sold all seven houses for a total of roughly $127.9 million, making a profit of around $25 million, although he had mortgages on several of the houses at the time…. The buyers include Kirill Evstratov, the 37-year-old founder and CEO of financial tech company Unlimint, splashy L.A. developer Ardie Tavangarian, and William Ding, the Chinese billionaire and founder of mobile gaming company NetEase. Mr. Musk sold another one of his properties, the former home of the late actor and director Gene Wilder, to Mr. Wilder’s 53-year-old nephew, Jordan Walker-Pearlman.