Sunday, September 14, 2025

Latest

China’s Regulatory Crackdown of Companies Listed on Foreign Exchanges Could Cut $2 Trillion From US IPO Market

A series of new regulations regarding the public listings of Chinese companies on foreign exchanges could end up having a significant impact on the US IPO market.

Over the past 20 years, Chinese tech companies have favoured the American stock market, given its abundant investor base and easy-going regulatory environment. However, a recent regulatory shift by Beijing could potentially put a cap on the American IPO market altogether. As reported by Bloomberg, the Chinese State Council has announced that all companies with over 1 million users wishing to list on overseas exchanges will be required to gain approval from the country’s freshly appointed cybersecurity regulator.

Previously, Beijing revealed intentions to alter regulations pertaining to “the overseas listing system for domestic enterprises,” in addition to administering control of international data flows and security. Experts cited by Bloomberg suggest that these latest moves could potentially lead to an end of Chinese IPOs in the US. “It’s unlikely there will be any US-listed Chinese companies in five to 10 years, other than perhaps a few big ones with secondary listings,” explained Peking University’s Guanghua School of Management in Beijing professor Paul Gillis.

According to figures put out by the US-China Economic and Security Review Commission and later cited by CNBC, there were approximately 248 Chinese firms listed across US exchanges, amounting to a combined market capitalization of over $2.1 trillion. Now, however, that figure has fallen by nearly one-third over the previous six months, according to the Invesco Golden Dragon China ETF (PGJ), following the latest regulatory tightening.

Government scrutiny hit a tipping point in June, when Chinese-based ride-hailing app Didi Global Inc went ahead with its NYSE listing against objections from regulators, which urged the company to make its public debut in Hong Kong instead. Soon after, shares of Didi plummeted by almost 20%, after Beijing regulators announced a cybersecurity inquiry, ultimately halting the company’s new user registrations.

Information for this briefing was found via Bloomberg and CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fury Gold Mines: The Eau Claire PEA

Soma Gold Q2 Earnings: Production Drops Amid Growth Effort

Guanajuato Q2 Earnings: Things Are Going Backwards

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Massive COVID Outbreaks In China Seem Certain To Ripple Through Global Economy

North American equity markets have so far largely ignored the rapid and enormous COVID outbreak...

Friday, December 30, 2022, 12:10:00 PM

Evergrande Still Faces MAJOR Debt Obligations in Coming Years Despite ‘Resolving’ Thursday’s Interest Payment

Although markets exhaled a sign of relief upon news that Evergrande had come to an...

Thursday, September 23, 2021, 11:09:00 AM

China Rare Earth Exports Fall Dramatically in 2020, Positively Impacting Energy Fuels Inc

Last week, China announced that it exported only 35,448 tonnes of rare earth materials, down...

Saturday, January 23, 2021, 01:24:00 PM

China: Europe Must Adhere to Climate Change Goals Despite Geopolitical Uncertainty

Yes, you read that right: China, the epitome of dirty energy consumption, is urging Europe—...

Thursday, September 22, 2022, 02:34:39 PM

South Africa Seeks US Response on Aid Cut as China Pledges Support

South Africa’s foreign minister Ronald Lamola said on Monday the US has not responded to...

Tuesday, February 18, 2025, 04:19:00 PM