Moonshot AI, DeepRoute.ai and StepFun rethink offshore structures
Updated
Updated · The Information · May 1
Moonshot AI, DeepRoute.ai and StepFun rethink offshore structures
16 articles · Updated · The Information · May 1
China's securities regulator has questioned Moonshot and DeepRoute over overseas holding companies as they pursue Hong Kong listings, while Shanghai-based StepFun started unwinding earlier this year.
The tougher stance follows Beijing's order to unwind Meta's $2 billion Manus deal and could delay IPOs by six to 12 months through complex joint-venture restructuring.
Removing red-chip structures may curb access to dollar funding and complicate governance, even as Hong Kong becomes a preferred listing venue for Chinese tech firms amid US-China tensions.
As Beijing redirects tech IPOs homeward, can Hong Kong's market truly replace Nasdaq for China's ambitious AI sector?
With China forcing startups to unwind foreign structures, what becomes of the global VC funds that fueled their growth?
Will China's new 'firewall' for tech, aimed at blocking US capital, ultimately stifle its own global AI ambitions?