Loading ...Speaking of which. So does it start. A stock market war next?
Funny and ironic on how some of these tech companies compliant with destroying this country and it’s constitution is their only safe haven.
BABA
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DIDI
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By Keith Zhai in Singapore and Jing Yang in Hong Kong
Wall Street has long been a bridge between China’s economic miracle and the U.S. Blockbuster listings of firms like Alibaba Group Holding Ltd. in New York emphasized China’s rising economic clout while letting American investors profit from their growth.Now, China is proposing tougher rules to restrict such listings, highlighting the diverging visions in Beijing and Washington of the future of technology, data protection and security.With a widening gulf of distrust on a range of issues, both Chinese and American companies could get caught in the middle.China said Tuesday it will tighten rules for companies seeking to sell shares abroad and strengthen oversight of overseas-listed companies, moves that could hinder attempts by homegrown firms to raise money in the U.S.recently listed in the U.S.The shift comes as Chinese regulators intensify scrutiny into technology companies, including Didi Global Inc., that recently listed in the U.S.delay its initial public offeringTurmoil around Didi foreshadowed the
latest move. The ride-hailing giant has faced a series of regulatory actions at home since its New York stock debut last week. According to people familiar with the matter, Chinese officials suggested it delay its initial public offering, partly amid concerns that the U.S. government could use audit documents U.S.-listed companies have to file to gain access to companies’ data on Chinese citizens.launched data-security reviewsIn recent days, a unit of China’s cybersecurity regulator also said it launched data-security reviews into popular mobile apps operated by Full Truck Alliance Co. and Kanzhun Ltd., which raised close to $7 billion in total from U.S. IPOs in June.The measures could have far-reaching implications for a raft of China’s tech giants that are planning IPOs offshore, and for the global investment firms that hold stakes in them. Many investors bought into fast-growing Chinese startups expecting to cash out after the companies list on global exchanges.In the U.S., IPO bankers scrambled over the holiday weekend and into Tuesday to understand the directives coming out of China, according to people familiar with the matter. Some fielded calls from furious fund managers who had purchased shares of Didi in its IPO last week, only to watch the company lose a huge chunk of its valueâ??as of midday Tuesday, Didi’s stock was 12% below its IPO price. A big question on those investors’ minds: Who knew what, when? Didi has said it wasn’t aware of Chinese regulators’ plans to put it under cybersecurity review and ban new downloads of its app ahead of its IPO.Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. were the main underwriters on Didi’s offering. All three firms declined to comment.Also top of mind for IPO bankers and investors who own U.S.-listed shares of Chinese companies is whether the new guidelines out of China are only about data, or if they represent a sea change from the country that could lead to companies pulling potential U.S. listings. the Chinese IPO pipelineEither way, a freeze of the Chinese IPO pipeline seems to be the current state of play: Bankers say any Chinese company that was planning a U.S.-listed IPO in the coming months is likely being shelved for now. Both Beijing and Washington have long seen economic engagement as the cornerstone of the two countries’ ties. But the relationship has become so unpredictable over the years that even the drive to make money in each other’s markets no longer works as a unifier.In Chinese President Xi Jinping’s vision, Chinese entrepreneurs should put their nation ahead of business interests as the two countries compete for …
goes on and on