Insight - Chinese tech start-ups pull IPO plans as Beijing tightens scrutiny


The scramble to withdraw IPO applications raises questions over the quality of China’s IPOs and robustness of due diligence done by their underwriters

A GROWING number of Chinese tech start-ups are cancelling plans to list on Nasdaq-styled markets at home with some eyeing Hong Kong share sales instead, as regulators tighten scrutiny of initial public offering (IPO) applicants after the halting of Ant Group’s (pic) US$37bil (RM153bil) float.

Over 100 companies have voluntarily withdrawn applications to list on Shanghai’s STAR Market and Shenzhen’s ChiNext since Ant’s termination of its IPO in November, according to Reuters review of exchange filings.The unprecedented withdrawals come against the backdrop of sharply intensified grilling of listing prospects by regulators, leading to IPO delays, outright rejection or even penalties, said bankers and company executives.

Subscribe now and receive FREE sooka plan for 1 month.
T&C applies.

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

F&N ends FY24 with higher net profit of RM542.77mil
Bursa Malaysia reverses early losses to end higher ahead of MPC outcome
Proton October sales up 13.6%, YTD hits 125,557 units
TCS secures RM86.38mil construction contract from Sime Darby Property
Oil trades in tight range ahead of US election
China shares jump, dollar skittish with all eyes on US Election Day
Bank Negara unveils key principles to harness Islamic finance for economic growth
Aneka Jaringan unit secures RM39mil contract for KL project
Xin Hwa says transport unit's vehicle operator licence suspended
T7 Global unit bags ExxonMobil contract

Others Also Read