Revival of Chinese IPOs in US Market as Regulatory Clarity Emerges

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China’s IPO Market Revives with Self-Driving Tech Provider, Hesai Group, Listing on Nasdaq

After a slow period in the once-thriving U.S. stock market for Chinese startups, Hesai Group has reignited the market with its successful listing on the Nasdaq on Thursday. Shares of the “lidar” tech provider for self-driving cars jumped 11% in the debut, raising $190 million in its initial public offering, exceeding initial expectations.

This marks one of the largest listings since Didi, the ride-hailing giant, raised $4.4 billion in its June 2021 IPO, which was followed by a cybersecurity review and subsequent delisting by Chinese regulators. Only six China-based companies had listed on the U.S. stock market via American depositary receipts since the Didi incident.

However, Chinese startups are once again preparing for U.S. listings as they receive more regulatory clarity. The Chinese authorities recently introduced a new rule requiring internet platform operators with more than 1 million user records to undergo a cybersecurity review before they can list overseas.

Drew Bernstein, co-chairman of Marcum Asia CPAs LLP, noted that his firm is currently working with around 50 companies, mostly based in China, that plan to list in the U.S., marking the strongest pipeline in the firm’s history. He anticipates that a successful round of deals will lead to a surge in IPOs, though he acknowledges that the process may take some time due to visa restrictions and travel restrictions to and from China.

source : cnbc

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