![]() has shed some $145 billion in value.Īt the heart of the recent crackdown is how far regulators will go to check foreign investment in sensitive industries, particularly those controlling vast amounts of data. So far this month, the Nasdaq Golden Dragon Index - which tracks some of the biggest Chinese firms listed in the U.S. Valuations for China’s technology firms, which were already falling before the recent onslaught, now look shakier as investors signal they will demand steeper discounts to buy shares, said one banker, asking not the named discussing internal business. In all, China’s crackdown on overseas listing threatens about 70 other private firms based in Hong Kong and China that are set to go public in New York, according to data compiled by Bloomberg. ![]() Other deals that could be in doubt include Hong Kong delivery firm Lalamove’s potential $1 billion IPO. IPO is also in limbo, according to people with knowledge of the matter. public filing, the Financial Times reported. IPO on Thursday.įitness app Keep has also opted not to go ahead with a planned U.S. One immediate victim was LinkDoc Technology Ltd., a Beijing-based medical data company, which halted preparations for a U.S. In the meantime, what had been a healthy IPO pipeline is weakening. has been very supportive of Chinese internet companies, the development of them, and the subsequent financing.” “Ultimately, China will find a solution because the U.S. “There are some uncertainties that might take one or two months to work its course,” David Chin, head of investment banking in Asia Pacific at UBS Group AG said of China’s changing rules at a briefing last week. Listing requirements in the financial hub and mainland China are also more stringent, making deals there far from certain. ![]() deals.īankers now say they expect the majority of Chinese IPOs aimed for American exchanges to be suspended or diverted to other venues, eating into projected revenue for the year given the significantly lower fees in Hong Kong. topped the league tables over that stretch, when nearly 40% of fees came from U.S. The moves imperil the frenetic dealmaking seen during the pandemic, and the lucrative business of offshore listings that’s pulled in some $6.4 billion in fees since 2014, when Alibaba Group Holding Ltd.’s began trading in New York. Simultaneously, President Xi Jinping stepped up oversight of big technology firms, partly to secure the treasure trove of data they control. In December, Donald Trump signed a bill that could delist Chinese companies that don’t meet audit inspection rules. As underwriters totted up a record $1.5 billion in fees last year from helping Chinese firms with initial public offerings offshore, relations between China and the U.S. The warning signs had been flashing for a while. and on-demand logistics and delivery firm Lalamove, which are considering IPOs.Keep reading list of 4 items list 1 of 4 China, N Korea pledge cooperation ‘in face of foreign hostility’ list 2 of 4 China’s ride-hailing Didi raises $4.4bn in upsized US IPO list 3 of 4 In its 100 years, who has China’s Communist Party purged? list 4 of 4 Didi tumbles after mega IPO as China unveils new cyber probe end of list The new rules could impact Chinese tech firms such as TikTok owner ByteDance Ltd. Since then, it’s been reported that Chinese fitness app Keep and vegetable startup Meicai have both scrapped plans for U.S. became the first known company to shelve an IPO in the wake of the newly proposed changes. On Thursday, Beijing-based LinkDoc Technology Ltd. The State Council said Tuesday that rules for overseas listings will be revised while publicly traded firms will be held accountable for keeping their data secure.Įven before the rules were announced, some companies that had planned to list in New York pulled their IPOS. “The one million-user threshold is very low and would basically apply to every internet company aspiring for an IPO."Īuthorities have accelerated a crackdown against overseas listings after Didi was said to push ahead with its debut in June, despite being asked to delay the plans as early as three months ago. “These rules will push more Chinese internet firms to list in Hong Kong instead of in another country, to bypass such a review," said Feng Chucheng, a partner at research firm Plenum in Beijing. So far this year, 37 Chinese companies have listed in the U.S., surpassing last year’s count, and raised a combined $12.9 billion, according to data compiled by Bloomberg. The regulator is seeking feedback on the proposed rules, which apply to listings in foreign countries specifically, before implementation.
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