HONG KONG (Reuters Breakingviews) - Markets are often schizophrenic and U.S-listed Chinese stocks are one example. Many were whomped as Washington regulators detailed how they will forcibly delist foreign companies unless they can pass audit inspections among other requirements. Yet recent Chinese floats in New York suggest a warm welcome awaits those still planning a listing. The risk is that if companies start to leave New York, minority investors will lose out more. As part of the rules released on Wednesday, companies can be kicked off American bourses if U.S. inspectors cannot vet their audits for three consecutive years. China has consistently blocked foreign access to mainland working papers, citing the need to protect state secrets. The law sparked a brutal selloff. Search engine Baidu, among the worst-hit, lost $20 billion in market value in two days. Yet firms from the People’s Republic keep coming. A U.S. listing appeals for many reasons including raising funds offshore that capital controls otherwise make difficult and helping build a brand for those with global ambitions. Ride-hailing giant Didi Chuxing is favouring Manhattan for a float that could value it at $100 billion, Reuters reported this week. Recent success stories are boosting the allure: Chinese real estate broker Ke has almost doubled in value since its August debut. In total, Chinese groups have raised $19 billion via New York initial public offerings in the past two years, per Refinitiv data. The latest selloff might prompt Chinese bosses to exit New York earlier to seek higher valuations closer to home. Some $24 billion worth of take-private offers were announced last year, according to Dealogic. If this trend is any guide, minority shareholders will hurt the most. Entrenched founders such as Charles Chao of web portal Sina have offered buyouts priced well below net asset value, leaving unhappy investors facing a long and uncertain battle in offshore courts for more. A delisting process risks transferring wealth from U.S. shareholders to Chinese founders and the private equity firms who back them. Trina Solar, taken private in 2016 for $1.1 billion, is now worth five times that in Shanghai. The U.S. market reaction this week suggests investors believe nothing good can come from Washington’s move. They have good reason to think that. BREAKINGVIEWS Reuters Breakingviews is the world"s leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors. MORE FROM REUTERS