China’s fitness program pulls the New York IPO system after the Didi debacle

A well-known Chinese program has made plans to deliver first aid to the US last week as Chinese authorities announced research of data security issues in Didi, boarding school.

Keep, sponsored by Japan’s SoftBank and China’s Tencent and expected to raise up to $ 500m, did not go ahead with its publication where bankers at Morgan Stanley banned advertising meetings with investors this week, according to two people familiar with the matter.

The move is one of the first signs that Didi’s security investigations with other Chinese companies named in the US, including the Full Truck Alliance car program and its co-authors Boss Zhipin, should affect billions of dollars in technology planned in New York this year.

Ximalaya, China’s largest podcasting platform, has retained its US IPO in recent weeks, according to someone familiar with the company. “After contacting the management, Ximalaya understands that Hong Kong lists will be seen as a positive outcome,” the man said. The company offered the opportunity in April.

Meanwhile LinkDoc Technology, China’s leading medical provider, has thwarted its plans for a Nasdaq IPO this week, according to a source familiar with the matter. It was due to the price of its shares on Thursday and is expected to raise more than $ 200m, Reuters reported.

On Tuesday, Beijing said it would happen Strengthen restrictions on a list of Chinese companies outside of work that could threaten more than $ 2tn on Wall Street.

The massive announcement, which indicates that US lists will be very difficult for Chinese companies, has come to fruition selling in modern Chinese stocks. China is concerned if citizen information is provided to foreign governments as part of a series.

A colleague at a US law firm that advised Chinese IPOs said the pipelines would be cut off. “Every deal should be done at a very low cost as the regulators show they are willing to stop the company from growing.”

Keep and SoftBank declined to comment on the IPO plans. Save was worth about $ 2bn in the most recent way to raise money, led by SoftBank’s Vision Fund, earlier this year. Its advertisers also include Tencent and Hillhouse Capital. Its value has been boosted by the provision of sustainable interior design and the sale of fitness equipment during the epidemic.

The move is the latest hit by SoftBank, Didi’s largest shareholder with about 20% stake. SoftBank shares fell 5% after the Chinese Cyberspace Administration revealed Didi’s search and ordered it to cancel the new registration of its software. SoftBank is also a fundraiser in the Full Truck Alliance, one of the largest US technology companies surveyed by Chinese data regulators.

Kirk Boodry, a technical researcher at Redex Holdings, said Didi’s research raised new questions about another major Vision Fund fund in China, such as TikTok company ByteDance. “In general, it could make China unattractive to other countries,” he added.

Quotes from Kana Inagaki in Tokyo and Christian Shepherd in Beijing