For Chinese companies looking to raise capital in the United States, the listing path is increasingly risky, and in the future, many large investment funds may decide to review their technology strategies. Many U.S. financial analysts have warned of the consequences of restrictions imposed on technology companies by regulators in Washington and Beijing.
Over the past year, the New York Stock Exchange has recorded significant shortcomings of Chinese companies, first of all DiDi Global, which was forced to start operations. Deleting Under the pressure of China’s Cyberspace administration, it is the government agency overseeing activities related to the Internet and data security of Chinese users.
Stop Chinese IPOs in the United States: The Impact on Companies
According to analysts, if the initial public offering of IPOs in the US financial markets is no longer possible, many Chinese technology companies are likely to retreat into Asia’s major trading center: Hong Kong.
Insertion into the index Hong Cheng However, this may not be enough to guarantee the return of capital comparable to the New York Stock Exchange, which may result in lower stock ratings than expected.
To give an example, at the time of writing the e-commerce giant headline AlibabaBusiness in Hong Kong, provides a quote 87% reduction (Considering the price of the shares expressed in US dollars compared to the shares traded on the NYSE).
Another hurdle to overcome for technology companies looking to launch an IPO in Hong Kong is the waiting hours for approval from Beijing authorities: about 140 Chinese companies are still waiting for a response. , According to data provided on the Hong Kong Stock Exchange Internet Portal regarding applications submitted in the first three quarters of 2021.
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