![]() ![]() Several Internet companies, including Didi Chuxing, Tencent and Alibaba, were fined by the State Administration of Market Regulation (SAMR), China’s chief antitrust regulator, for failing to report earlier merger and acquisition deals for approval. A flurry of escalated regulatory actions has since followed. What is obvious is, that this is not an isolated incident. The timing of Didi’s IPO and the government’s reaction - one day before and after Beijing’s grand celebration of the 100th anniversary of the Chinese Communist Party - has also invited inevitable speculation about its political inference. Since the Chinese government initiated its investigations and imposed sanctions against Didi Chuxing on July 2, two days after Didi Global’s initial public offering (IPO) on the New York Stock Exchange on June 30, there has been widespread external public consensus that the Chinese official actions implied stronger regulatory strangleholds on China’s Internet “big techs,” as well as deterrence against further foreign IPOs. Charles Mok analyses the aftermath of Didi’s IPO and what this means in the greater scheme of things. But it would be short-sighted to believe that this is only relevant for big tech companies such as Alibaba and, most recently, Didi. auditing rules.īREAKINGVIEWS-Chinese IPO detour benefits Hong Kong only so muchĭidi extends slide as Beijing clampdown sounds alarm for U.S.The Chinese government's reaction to Didi’s overseas IPO was not an isolated incident - it is looking to install tighter control over data and capital. 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. market close on Thursday.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. and make it more difficult to raise funds overseas," he said.īacked by Alibaba Health Information Technology Ltd 0241.HK, 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. Beijing 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. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |