4/5/2023 0 Comments Sources ximalaya linkdoc us![]() ![]() However, a number of companies have delayed their listings in recent months as valuations have waned somewhat for tech firms, and China has taken a series of regulatory measures to reshape the industry. That compared with US$20.5 billion raised in Shanghai and US$28.59 billion in Hong Kong in the first six months of the year. In the first half of the year, 34 Chinese companies combined to raise US$12.5 billion in the US, the most in more than a decade and more than the US$10 billion raised by companies on the Shenzhen Stock Exchange in the same period, according to financial data provider Refinitiv. ![]() Are they factoring in the national security issue when they applied to go public ?” The point is, whether companies like Didi have recognised the issue. It’s not new, and the issue is always there. “Big data does have national security implications. “This is not an issue about whether China is encouraging US listings or not … it is about data security,” said Edward Tse, founder and chief executive of Gao Feng Advisory Company. It is the latest in a series of crackdowns on the country’s tech sector after regulators shelved the dual listings of Ant Group in Hong Kong and in Shanghai in November just days before they were set to happen and ordered a series of anti-monopoly inquiries in the sector. The new regulations sent Didi’s shares down more than 20 per cent in New York in trading on Tuesday. One regulatory source said Didi “forced its way” to go public in New York despite an incomplete data security assessment by the CAC. ![]() The rule changes came in on Tuesday just days after the Chinese Administration of Cyberspace (CAC) said it was conducting a review of Chinese ride-hailing giant Didi Chuxing’s data collection policies on “national security” grounds and would conduct similar reviews of several Chinese tech companies who recently listed in the US.ĭidi’s US$4.4 billion IPO was the biggest by a Chinese company on an American bourse since Alibaba, the owner of the Post, raised US$25 billion in 2014. “It will be inevitable that some Chinese companies may hold up their US listing plan as they will check on how they can comply with the new mainland regulation,” said Tom Chan Pak-lam, chairman of the Hong Kong Institute of Securities Dealers, the industry body for local brokers in the city. The new rules could slow what has been a steady stream of listings by Chinese firms in the US, but are not likely to end them completely as American financial markets remain some of the deepest and most liquid in the world and are still attractive to Chinese entrepreneurs, particularly the founders of technology firms, according to accountants, lawyers and other deal makers. ![]() More than 20 companies have filed paperwork to pursue listings on American bourses, with dozens more waiting in the wings, according to regulatory documents reviewed by the Post. The announcement comes after nearly three dozen Chinese companies raised an eye-popping US$12.5 billion through IPOs in the US in the first half of this year. Edward Tse was quoted by South China Morning Post on China's new IPO rules.Īlibaba Group Holding backed bike rental company Hello, Tencent backed Spark Education and medical data solution provider LinkDoc Technology are among more than a dozen Chinese companies that could face challenges to their listing plans in the US after Beijing announced it was tightening its rules on initial public offerings.Ĭhina’s State Council said late on Tuesday it would undertake a sweeping overhaul of its regulations on how companies raise capital both domestically and overseas, which could stymie efforts for high-flying technology companies to access the American capital markets. China's New IPO Rules Could Hinder Companies From Bike-Rental Firm Hello to Spark Education Preparing For US Listings ![]()
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