Tuesday, October 7, 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

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Shares of Didi on the Rise Following Report of Beijing Takeover

Shares of Didi (NYSE: DIDI) jumped this week, amid reports that the Chinese government may...

Saturday, September 4, 2021, 11:06:00 AM

China’s Lockdowns Could Further Fan Inflationary Pressures in North America

Investors as a whole have paid little attention to the implications of China’s decision to...

Sunday, April 24, 2022, 09:00:00 AM

Trump’s Tariff Was Able To Unite China, Japan, South Korea… Against It

China, Japan, and South Korea, three nations with a long history of political and economic...

Tuesday, April 1, 2025, 10:38:00 AM

Local Chinese Governments Face Massive Bond Payments Over the Next Three Years

Local governments across China are about to run into a surmounting debt pile within the...

Monday, January 17, 2022, 02:26:00 PM

China Probes Apple Contractor Foxconn As Firm Founder Runs For President In Taiwan

Chinese state media reported on Sunday that an investigation has been launched into Apple iPhone...

Tuesday, October 24, 2023, 12:56:00 PM