SHANGHAI/HONGKONG (Reuters) – Chinese business are postponing plans for U.S. listings as tensions between the world’s leading 2 economies rise, attorneys, lenders, accountants and regulators involved in what has been a major capital-raising route told Reuters.
SUBMIT PHOTO: The New York Stock Exchange is seen in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, New York City, U.S., April 13,2020 REUTERS/Andrew Kelly
The drop in interest, particularly from those in the early phases of preparation, is the result of a proposed U.S. legislation that would make it harder for some Chinese firms to debut in America and installing scrutiny following an accounting scandal at Chinese Starbucks rival Luckin Coffee ( LK.O).
” We have actually seen customers putting their U.S. IPO intends on hold in the meantime,” stated Stephen Chan, a partner at law office Dechert LLP in Hong Kong. “The hidden reason for the downturn is the relationship between the U.S. and China,” he added.
” If stress between the two countries remain, we would anticipate the slowdown to continue,” Chan said.
Chinese groups have actually raised $1.67 billion by means of going publics in New york city this year and are aiming to raise about half billion more on U.S. exchanges, Dealogic data