Chinese Tech Companies Pursue US IPOs Amid Trade Tensions
Chinese Tech Companies Explore US IPO Opportunities
US IPOs are becoming increasingly appealing to Chinese tech companies such as Walnut Coding, also known as Beijing Smart Walnut Education Technology. This firm aims to raise approximately US$100 million through an IPO in the United States. The potential listing comes even as these companies navigate the challenges posed by ongoing trade tensions between Beijing and Washington.
Other Firms Eyeing the US Market
- Shenzhen Cloudsky Technologies
- Zaihui
- Zhonghe Group
Similar to Walnut Coding, these firms are reportedly considering raising around US$100 million each. However, decisions regarding share sales are still pending, and they might opt to withdraw from the process if conditions do not improve.
Backing and Market Insights
Walnut Coding’s ambitions are supported by significant investors such as KKR & Co and Hillhouse Investment. Though the allure of the US market remains strong due to its liquidity, fewer Chinese companies have ventured into this space since the difficulties faced by Didi Global during its IPO in 2021.
Positive Trends despite Uncertainty
The US IPO landscape is showing signs of resilience. For instance, Chagee Holdings, a tea chain, successfully launched its IPO, raising US$411 million. Its shares surged 16% post-debut, showcasing the potential for success even amidst fluctuating market conditions.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.