Warning: Use of undefined constant yes - assumed 'yes' (this will throw an Error in a future version of PHP) in /home/hourshan/public_html/wp-content/themes/wp-sublime/banner468.php on line 3

Concern over the fate of “Jack Ma” is prompting Chinese technology companies to do so


Concern over the fate of “Jack Ma” is prompting Chinese technology companies to do so April 7, 2021 After the failure of the IPO of “You Group” of Chinese business tycoon “Jack Ma” Earlier last year, a large group of Chinese technology giants moved to withdraw their applications for an offering on the Shanghai Stock Exchange. At a time when the Chinese authorities tightened auditing procedures, which prompted these companies to retreat from the idea of ​​the offering. A report by the “Financial Times” newspaper indicates that the number of companies that withdrew applications to be listed in the market during last March amounted to about 76 companies, an increase of more than doubling from February of this year. Amidst a state of fear among those companies, that the fate of the Chinese business magnate Jack Ma, who faced many difficulties, eventually forced him to withdraw the offering. The recent wave of cancellations resulted in an increase in the number of companies that withdrew from the IPO decision to more than 180 companies, while the number of companies that canceled plans to list only 11 companies last November during the emergence of the crisis of “You Group” affiliated with Jack Ma for the first time. And last November, surprisingly, the authorities suspended the “Ant Group” offering in an unexpected surprise, after the markets were preparing to receive the largest initial public offering in history, at about $ 37 billion. The move came just 10 days after Jack Ma criticized China’s financial authorities at a forum in Shanghai on October 24. The cancellation caused a sell-off in shares of the Chinese giant, Alibaba, which ultimately led to Jack Ma being stripped of the title of the richest person in China after his fortune plunged 10% to $ 45.5 billion, according to Bloomberg data, which tracks the fortunes of the rich around the world. The new legislation requires all executives to disclose their bank accounts and give an explanation for any transaction whose value exceeds 30,000 Chinese RMB, or the equivalent of about 4,500 dollars, in addition to many procedures that make companies withdraw from the decision to offer.
You are a sunset For example, Zhejiang Qizhi, a company that specializes in providing information security services, withdrew its IPO request last March after the company received about 28 inquiries from regulators in China regarding the company’s evaluation and its reliance on a limited number of income sources, which ended the company at the end. To undo the listing decision. These reasons push Chinese companies to place in the US money market to obtain dollar financing that they cannot obtain in mainland China, as the government tightens restrictions on foreign capital in addition to the recent supervisory measures that include unprecedented complications.A study prepared by the University of Florida indicates a record increase in the number of Chinese companies that have accumulated liquidity through IPOs in the US capital markets during the past year.
According to the study, the number of Chinese companies that offered their shares on Wall Street last year reached 32, which is the highest level recorded in 10 years, while those companies raised about $ 12.1 billion, which is another record level since 2014 when Jack Ma’s Alibaba company launched Its shares in the US money market.

This data comes from MediaIntel.Asia's Media Intelligence and Media Monitoring Platform.

Comments are closed.