China puts New York IPO small print risk in bold


Cheng Wei, CEO of Didi Chuxing, speaks at a product launch event in Beijing, China, Nov. 16, 2020. REUTERS / Yilei Sun / File Photo – RC2Q7O9JDVG1

HONG KONG, Jul 5 (Reuters Breakingviews) – China’s new cybersecurity regulator has bolded the small print risks in prospectuses. The government is investigating China’s Full Truck Alliance (YMM.N), better known as Manbang, and online recruiter Kanzhun (BZ.O), known as Boss Zhipin, both of whom were listed in New York in June after getting a ridesharing Didi (DIDI.N) hammered the app just a few days after it raised $ 4.4 billion there.

Didi’s crackdown is dramatic in its timing but familiar in its methods. US investors have been circulated repeatedly by companies in industries threatened by impending regulatory action. This included the attack on the peer-to-peer lending industry in 2019, shortly after some of these lenders started trading, and more recently the private tutoring sector. In any case, the moves destroyed billions in …


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