![]() Just days after Chinese ride-hailing company Didi Global Inc.-the U.S.-listed affiliate of Didi Chuxing-was IPO’ed in New York earlier this month, China’s cybersecurity watchdog launched an investigation into the company and removed its app from Chinese mobile app stores. Subscribe now to stay ahead with the most trusted business news source.The United States and China are beginning to agree on one thing-that Chinese technology companies selling shares on U.S. (Adds updated table with deals sizes or valuations.) “This is all part of the ‘coming home’ strategy.” will have to rethink strategy and instead focus on a primary listing in Hong Kong,” Ramiz Chelat, a portolio manager at Vontobel Asset Management, wrote in a note. is down 30% since its secondary listing in the offshore Chinese city in March.Īny “listings in the pipeline that were planning to head to the U.S. TikTok rival Kuaishou Technology, which pulled off the world’s biggest share sale of 2021, slumped 17% last week, while New York-traded Baidu Inc. ![]() ![]() IPO, Bloomberg reported on June 24.īeijing’s spotlight on the tech sector is already taking a toll even on Hong Kong-traded firms. The Hong Kong-based delivery company backed by Tiger Global had filed confidentially for a U.S. listing hopeful is Lalamove, known as Huolala on the mainland. filing, according to the Financial Times, and e-commerce startup Meicai also put its float on hold, the South China Morning Post reported on July 9.Īpart from ByteDance, another closely watched U.S. SoftBank Group Corp-backed Chinese fitness app Keep opted not to go ahead with its U.S. LinkDoc isn’t the only deal put on hold, according to media reports. listing and restrained the ability of tech firms to raise capital through variable interest entity structures, which have allowed Chinese companies in sensitive industries like Didi and Alibaba Group Holding Ltd. These restrictions came as authorities ordered virtual stores remove apps from recently listed ride-hailing giant Didi Global Inc. Are Clashing Over Stock Listings: QuickTake ![]() That happened just after Beijing said Tuesday that rules for overseas listings would be revised and publicly traded firms held accountable for keeping their data secure. pulled a New York float that could have raised as much as $211 million, with people familiar with the deal citing market volatility. Last week, medical data firm LinkDoc Technology Ltd. That’s the highest for such a year-to-date period on record and almost exceeds the full-year tally for 2020. So far this year, 37 Chinese companies have listed in the U.S., raising about $13 billion in all, according to Bloomberg data. “Recent developments regarding overseas listings or related data security risks have put a downside risk to the Chinese tech sector,” said Mathieu Racheter, the head of equity strategy at Julius Baer Group Ltd. The Wall Street Journal earlier reported that ByteDance had put its intentions to go public on hold indefinitely. The company has not “shelved” its IPO plans and had not decided on specific timing, two of the people said, asking not to be identified discussing private information. is working to ensure it complies with data security requirements before going public after meetings with Chinese government officials over the issue earlier this year, people familiar with the matter said. offerings by its firms is going to close off a deep and liquid market for many of China’s smaller growth companies who would otherwise be unlikely to be able to meet the bar for listing back home or in Hong Kong.īig companies, too, have been affected: TikTok owner ByteDance Ltd. The broadened scrutiny by Beijing on U.S. There are about 70 other private firms based in Hong Kong and China set to go public in New York, according to data compiled by Bloomberg. initial public offerings by its companies has put its burgeoning pipeline of potential listings at risk.Ī medical data company, a fitness app and an e-commerce platform have, in the past week, postponed plans to go public in the U.S., as Beijing cracks down on tech and data-heavy firms listing stateside.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |