Chinese companies put US listing plans on ice as tensions mount

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SHANGHAI (REUTERS) - Chinese companies are putting off plans for US listings as tensions between the world's top two economies rise, lawyers, bankers, accountants and regulators involved in what has been a major capital-raising route told Reuters.. Read more at straitstimes.com.

SHANGHAI - Chinese companies are putting off plans for US listings as tensions between the world's top two economies rise, lawyers, bankers, accountants and regulators involved in what has been a major capital-raising route told Reuters.

"If tensions between the two nations remain, we would expect the slowdown to continue," Mr Chan said. Many companies that reported plans for US listings to China's securities regulator, marking an early stage in the process, are now targeting exchanges nearer to home, said a person close to the regulator.

'INVESTOR UNCERTAINTY' Chinese firms accounted for about a third, or some US$279 billion, of funds raised globally via IPOs in the past five years. About half of that was overseas, mostly through New York and Hong Kong floats. But a bill passed by the US Senate which, if signed by President Donald Trump, would require US-listed foreign companies to disclose levels of government control. It would also require that Chinese companies comply with US oversight of their audits or face being delisted.

 

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