and other countries on the back burner, the sources said. Related: Parade Of Chinese US IPOs Turns Into A Deluge Of Delays The proposed regulations are still undergoing final review and the CSRC anticipates being able to implement the new laws near the fourth quarter, and until then, asked some firms to sit tight, the sources said. The officials reportedly said firms that don’t collect sensitive data, such as pharmaceutical companies, will probably be green-lighted by regulators to move forward with public listings abroad, according to the sources.Ĭhina is in the midst of hammering out a set of new mandates that would essentially prohibit firms that collect and store reams of data from filing for U.S. See also: Chinese Watchdogs Tighten Tech Grip With New SAMR Rules The country is also developing a cross-ministry council that would be tasked with granting official approval for public listings in foreign markets, the sources said. The upcoming rules and the changing regulatory climate surrounding technology companies in China have caused a number of Chinese tech giants to pull planned IPOs in the U.S. listing plans last month, as did podcast platform Ximalaya, medical data firm LinkDoc Technology and digital fitness platform Keep.
In addition, at least five Chinese companies pulled IPO plans in China in the past few months.
#Sources didi keep linkdoc us ipotimes full#
Other Chinese firms like the truck-hailing app Full Truck Alliance and online recruiter Boss Zhipin have plans in the works for New York IPOs and are now being subjected to deepening scrutiny by regulators. Read more: Chinese Startups LinkDoc And Keep Suspend US IPO Plans #SOURCES CHINABASED KEEP LINKDOC US IPOTIMES FULL# Ridehail platform Didi went public on June 30 on the New York Stock Exchange and days later was subjected to intense scrutiny and an onsite cybersecurity review by seven Chinese regulatory agencies.ĭidi’s $4.4 billion IPO debuted as the biggest stock sale by a Chinese company since Alibaba’s 2014 listing. Rumors circulated that Didi was planning to delist and go private but the company released a statement stating that was false.Less than a week after Beijing pulled off its egregious rug-pull of the Didi IPO - after which the world learned that Beijing had 'suggested' to the company's management that the CCP wasn't entirely comfortable with their plans to list in the US - more Chinese firms are abandoning plans to list in New York as the world wonders whether the US has seen the last listing of a Chinese company.įollowing reports from earlier this week claiming TikTok-owner ByteDance had decided to abandon plans to list in the US in favor of listing in Hong Kong, two more Chinese firms called off their US IPOs on Thursday. They include Alibaba-backed LinkDoc and SoftBank- and Tencent-backed fitness app Keep. LinkDoc had planned to raise up to $210MM on the Nasdaq, but it closed its book on Wednesday despite reportedly strong demand. However, Nikkei reported that "market volatility, regulatory uncertainty and fear of angering Chinese regulators have prompted the company to cancel the offering, one of the people said. The company had been expected to price the deal today, which means it would have likely started trading some time next week.
On Wednesday, LinkDoc updated its prospectus to cite new risks from Beijing, in what was perhaps a hint that the deal would soon be pulled. According to anonymously-sourced whispers, LinkDoc, a provider of cancer-focused health care services using big data and artificial intelligence, had planned to sell 10.8MM shares priced between $17.50 and $19.50 each. Including the $4.4 billion raised by Didi, a total of 36 Chinese companies have sold shares in New York this year, raising a total of $12.6 billion, according to Dealogic.
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