China’s losses put at least 70 IPOs, billions of dollars on ice | Banking Issues

A few months after investors had celebrated the departure of Chinese companies in New York and Hong Kong, they were aroused by the outcry. Sales are kept and money is wasting a lot of money.

The recession hit the global economy two weeks after China hit Uber-like Didi Global Inc. for the first time. just days after the US began trading, I was promptly followed by the State Council announcing a review of all maritime lists. On Saturday, a cyber security survey was pre-arranged for companies with the knowledge of more than 1 million users before they wanted to list in foreign countries.

The warning signs were on for a while. When authors recorded $ 1.5 billion in fines last year from helping Chinese companies make public offerings for the first time, relations between China and the US deteriorated. In December, Donald Trump signed a document that would target Chinese companies that do not comply with the audit rules. At the same time, President Xi Jinping began to oversee major technology companies, perhaps to protect the economy under his control.

This is complicating the damage caused by the epidemic, as well as the lucrative maritime business that has taken $ 6.4 billion in payments since 2014, while Alibaba Group Holding Ltd. began trading in New York. Morgan Stanley, Goldman Sachs Group Inc. and China International Capital Corp. they were the ones who accomplished the event, while about 40% of the revenue came from the US.

Banks now say they expect more Chinese IPOs who want the American exchange to be suspended or relocated, consuming their expected annual revenue at a much lower rate in Hong Kong. Writing on the economic and international list in China is very difficult, and making the deal there far away from others.

“There are uncertainties that could take a month or two to happen,” David Chin, chief executive of Asia Pacific’s financial banking at UBS Group AG, said in a change in Chinese law at a meeting last week. “In the end, China will get the answer because the US has greatly helped Chinese internet companies, improvements, and the money that has been tracked.”

Meanwhile, the pipes that were good IPO are dwindling. Among those present was LinkDoc Technology Ltd., a Beijing-based pharmaceutical company that banned the preparation of a US IPO on Thursday.

The Fitness Keep program has also decided not to continue enrolling people in the US, the Financial Times reported. The US IPO Ximalaya Podcast program is also in the limbo, according to people who are aware of this. Other potentially questionable activities involving a Hong Kong Lalamove investment company could be a $ 1 billion IPO.

In general, China’s exposure to foreign exports threatens another 70 companies from Hong Kong and China to be identified in New York, according to a report by Bloomberg.

The accounting of Chinese technical companies, which had already experienced a recent collapse, now appears alarming as traders indicate they will want to cut further to buy stocks, said one banker, who did not ask for the names in question. Earlier this month, the Nasdaq Golden Dragon Index – which tracks the largest Chinese companies listed in the US – has dropped $ 145 billion in value.

At the heart of the recent collapse is that regulators have gone out to see foreign investment in complex industries, especially those that are directing large amounts of information. For two decades China’s professional giants have ignored the ban, using a brand called Variable Interest Entity to attract foreign capital and IPOs to the sea.

The China Securities Regulatory Commission is now leading a review of foreign law that would require VIE companies, which do business in China but register in Cayman Islands, to apply for a permit before selling foreign shares, Bloomberg said. The Cyberspace Administration in China said on Saturday that its review would address issues that could affect data, control, and abuse by foreign governments.

Undercut payments

Hong Kong is looking to benefit from political and regulatory disputes even as economic instability can also be driven by coercion. If China’s unicorn IPOs run low, Hong Kong’s exchanges should continue to be boosted by the second list and the change in American receipts, according to Bloomberg Intelligence expert Sharnie Wong.

“Some Chinese companies that work in difficult groups may be considering living in Hong Kong instead of the US,” said Kenneth Ho, marketing manager at Haitong International. “Right now the HK IPO pipeline is the best.”

The reversal reduces the amount of money banks can earn after a decade when Chinese companies made about $ 76 billion through their first sale in the US

Banks pay about 1.5% to 2% for a billion dollars in Hong Kong, compared with 3% to 5% in the US because fees vary by clubs and subscribers. This is an increase of 2 percent or more in the $ 500 million market, which investors are well aware of.

In China in the north, the Shanghai technical board for STAR expertise is similar to the US but sponsors are required to spend between 2% and 5% of their customer contributions, a foreign system that could reduce interest rates when participating in elections due to the need for tertiary accommodation .

The dictatorship is evident as China opens up its financial market so that foreign banks and asset managers can establish public-owned companies. Electricity companies such as Goldman Sachs have been multiplying their partners, seeking to double or triple their heads in China, as they grow and receive billions in the second world fortune.

The Chinese market like Nasdaq’s STAR has enabled technology companies to make money at home, although this encourages companies that focus more on technology and technology.

China’s reliance on foreign currency to boost its businesses has declined from a decade ago, says Martin Chorzempa, a senior associate at the Peterson Institute for International Economics. “We are in a country where it is not really difficult for Chinese companies to make more money without having to list their lists.”

However, UBS ‘Chin says it is unlikely that many Chinese companies will meet the requirements for real estate, which has become more difficult this year.

“Eventually he’ll have to rewrite it,” he said. “We are very familiar with such developmental and unconventional approaches, and in the end business ideas will prevail and funding and IPOs will continue.”