U.S. IPO market a danger zone for Chinese firms after Beijing crackdown
The Hindu
U.S. capital markets have been a lucrative source of funding for Chinese firms in the past decade, especially for technology companies looking to benchmark their valuations against listed peers there and tap an abundant liquidity pool.
China's stepped-up scrutiny of overseas listings by its companies and a soon after its debut in New York have darkened the outlook for listings in the United States, bankers and investors said. (Subscribe to our Today's Cache newsletter for a quick snapshot of top 5 tech stories. Click to subscribe for free.) On Tuesday Beijing said it would strengthen supervision of all Chinese firms listed offshore and tighten rules for cross-border data flows, a sweeping regulatory shift that is also set to weigh on the long-term valuations of the IPO-bound companies, they said.More Related News