Last week, medical data firm LinkDoc Technology Ltd. This is the highest value for such a period from year to year and almost exceeds the year-round sum for 2020. So far this year, 37 Chinese companies have ranked in the United States and raised a total of about $ 13 billion, according to Bloomberg. and Qiniu Ltd., which put their plans on hold in May. Provider of online retail services Beijing DMall E-commerce Co.Company for organizing and creating content for Esports VSPN tournaments.FC Evergrande Group’s online home and car sales platform.Maid and home maintenance service provider Swan Daojia.Online portal for financial information Snowball Finance Co.Start-up of artificial intelligence chips Horizon Robotics Inc.More Chinese companies seeking an IPO in the US: “Recent developments in overseas listings or related data security risks have posed a risk to China’s technology sector,” said Mathieu Reicher, head of equity strategy at Julius Baer Group Ltd. Large companies are also affected: TikTok’s owner, ByteDance Ltd., has indefinitely suspended its intentions to make offshore listings earlier this year as officials told the company to address data security risks. There are about 70 other private companies based in Hong Kong and China that will go public in New York, according to data collected by Bloomberg.īeijing’s expanded control over US proposals by its companies will close a deep and liquid market for many of China’s smaller growth companies, which are otherwise unlikely to meet China’s integration requirements or in Hong Kong. Last week, a medical data company, fitness app and e-commerce platform postponed plans to go public in the United States as Beijing cracked down on technology and data-rich companies. auditing rules.(Bloomberg) – China’s repression of initial public offerings in the United States by its companies has put potential listings at risk. regulations being rolled out that could see Chinese companies delisted if they do not comply with U.S. regulators will potentially gain more access to audit documents of New York-listed Chinese companies.Īnalysts also note the tougher stance coincides with new U.S. listing plans and opt for Hong Kong instead, with one source at the time citing Beijing's concerns that U.S. In May, Reuters reported that Beijing was pressing audio platform Ximalaya to drop U.S. The tougher stance by the Cybersecurity Administration of China has been driven in part by concerns that the United States could gain greater access to data owned by Chinese firms - similar to concerns that the previous Trump administration had voiced about Chinese firms operating in the United States. later this year, a review of the filings showed. listings, Refinitiv data shows, well up from the $1.9 billion from 14 deals in the same period a year ago.Įight Chinese companies including home service platform Daojia Ltd and Atour Lifestyle Holdings have made public filings with the Securities and Exchange Commission (SEC) to list in the U.S. So far this year, a record $12.5 billion by Chinese firms has been raised from 34 U.S. LinkDoc did not immediately respond to a request for comment. The sources declined to be identified as the information has not yet been made public. The book closed one day earlier than planned on Wednesday, one of the three sources and a separate person said. It had planned to sell 10.8 million shares between $17.50 and $19.50 each. and make it more difficult to raise funds overseas," he said.īacked by Alibaba Health Information Technology Ltd, LinkDoc filed for its IPO last month and was due to price its shares after the U.S. "The new rules may impose long waiting periods on any companies hoping to list abroad which will hit investor sentiment, depress valuations for IPOs in the U.S. listing, they may have to wait for further clarification, stricter scrutiny and pre-approval from different regulators and authorities," said Bruce Pang, macro & strategy research head at China Renaissance Securities. LinkDoc's decision to suspend its $211 million IPO, first reported by Reuters, is likely to be followed by others, analysts said, although they noted that U.S. That was soon followed with an order for Didi's app be removed from app stores.īeijing also said on Tuesday it would strengthen supervision of all Chinese firms listed offshore, a sweeping regulatory shift that triggered a sell-off in U.S.-listed Chinese stocks. It is the first Chinese firm known to have pulled back from IPO plans since China's cybersecurity regulator toughened its approach to oversight last week with an investigation into ride-hailing giant Didi Global Inc just two days after its New York debut.
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