INSIGHTS | Politics aside, Chinese tech firms pile into US markets

5 min read
Shanghai Stock Exchange board. (Image credit: Bigstock/Kurikawa)

It’s all aboard the US IPO train for Chinese firms this month. At least 10 filed in October, compared to just 23 finished listings during all of 2018. 19 Chinese firms have completed IPOs stateside this year to date.

Drone maker Ehang, podcast site Lizhi, and NetEase edtech arm Youdao are all among those that filed in October.

The US IPO boom came as China hoped to bring listings home with Nasdaq-style tech board the STAR Market, launched in July. The STAR Board, based at the Shanghai Stock Exchange, offers a number of concessions to attract tech companies to list domestically, including registration-based listing and allowing loss-making firms to list.

Bottom line: Politics matters, but businesses go where the money is. Beijing is trying to bring Chinese hi-tech listings home, while Washington is growing hostile to them. But uncertainty in Hong Kong seems to be driving firms t

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