![]() Ximalaya, which had issued a prospectus in April, also canceled its US IPO in recent weeks. “After communication with the relevant regulators, Ximalaya understands that a Hong Kong listing would be regarded as a preferred outcome,” people with knowledge of the matter told Financial Times. LinkDoc, which due to price its shares on Thursday and expected to raise more than $200m, shelved its Nasdaq IPO plans this week. The Alibaba-backed company offers a repository of big data for the healthcare industry such as clinical trials, AI diagnosis, and management.Ĭontext: Data security and cyber sovereignty are also what China emphasis in recent years. On June 11, Beijing passed a new Data Security Law that regulates how companies collect, store and use data. Last week, citing concerns over national data security, China’s Cyberspace Administration of China initiated a review of Didi, Full Truck, and Boss Zhipin, three recent US-listed technology companies According to reporting by the Financial Times, other Chinese tech companies who. #Chinabased keep linkdoc us ipotimes full Chinese medical data group LinkDoc Technology has shelved plans for an IPO in the US amid the clampdown on overseas listings, Reuters reported Thursday, citing sources with direct knowledge of the. IPOs due to regulatory pressure include fitness tech company Keep. #Chinabased keep linkdoc us ipotimes full.“Even if the stock rebounds, American investors still have no insight into the company’s financial strength because the Chinese Communist party block US regulators from reviewing the books,” Rubio told the UK newspaper. ![]() “That puts the investments of American retirees at risk and funnels desperately needed US dollars into Beijing.” The political atmosphere around listings of US companies has been charged for months. Former President Donald Trump signed a law in November that bans Americans from investing in firms that the US government suspects are either owned or controlled by the Chinese military. That forced US exchanges to delist several Chinese companies, including China Mobile, China Telecom and China Unicom. President Joe Biden has followed the same path, expanding restrictions on US investment into Chinese companies with suspected military ties. The big question: Given the political backdrop, why do Chinese companies continue to pursue US listings?Īnalysts say there are several advantages to listing in New York:įor Chinese tech companies, a US listing is even more attractive because American investors are used to dealing with startups. And US exchanges accept a wider range of valuation methodologies. Hong Kong has tried to steal business from New York in recent years, encouraging Chinese companies to sell shares in the city in what have been dubbed “homecoming listings.”īut the pull of New York is strong. According to Jefferies, 10 Chinese companies completed US IPOs in 2020, representing over 20% of the market excluding SPACs - the highest percentage of US IPO issuance since 2010.ĭidi was a continuation of that trend. ![]() It was the biggest US IPO by a Chinese company since Alibaba’s debut in 2014.Įnd of an era? Pressure is not just coming from the United States. On Tuesday, China said it would increase regulation of overseas-listed companies, heaping additional pressure on Didi. The government said it will severely punish illegal securities activities, including fraudulent share issuance, embezzlement and market manipulation. It said securities fraud was prominent in overseas markets. Will the next Alibaba or Didi choose New York? Stay tuned.
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