Chinese Startup DouYu Delays U.S. IPO Launch on Trade Jitters – Bloomberg
What happened: Chinese video game live-streaming platform Douyu is considering delaying its IPO roadshow, which was scheduled on Monday US time, by at least a week. People with knowledge of the matter told Bloomberg that the decision was made following global market turmoil after US president Donald Trump threatened new tariffs on Chinese goods. The Tencent-backed company filed its IPO application to the New York Stock Exchange last month, seeking to raise up to $500 million.
Why it’s important: In the past two decades, the number of public companies listed in the US nearly halved, and each has grown much bigger, a sign of unhealthy industry concentration. But Chinese tech companies have become a rich source for US IPOs in recent years. Thirty-three Chinese companies went public in the US in 2018, accounting for 17% of all US IPOs. If the trade war continues to escalate, Chinese tech firms may have to find other markets for financing. China has already set up a Nasdaq alternative, the Science and Technology Innovation Board on the Shanghai Stock Exchange, for high-tech firms seeking IPOs.