Reported 6 months ago
China's regulatory hurdles continue to obstruct offshore IPOs despite improving market sentiment, with firms facing lower valuations and a prolonged approval process. The article discusses the challenges Chinese companies encounter in obtaining approval for overseas listings, impacting fundraising and revenue for global investment banks. While Beijing's vow to facilitate Hong Kong IPOs and recent market growth offer hope, the offshore IPO pipeline remains congested, with over $20 billion worth of proposals awaiting approval, affecting companies like Midea and leading to uncertainties in the IPO process. The article highlights delays caused by inter-departmental scrutiny and the impact on firms with a variable-interest-entity structure. With China's regulatory crackdown and economic slowdown, IPO aspirants are concerned about listing at reduced valuations due to the prolonged approval timeline and changing political dynamics.
Source: YAHOO