Things are looking pretty bleak for Chinese tech right now, especially for companies considering listing on foreign exchanges to raise funds. The chill created by tensions both within China and with its greatest rival could stall foreign investment in Chinese technology.
Investors are already unsettled. China’s unprecedented tech crackdown has been wiped out $ 1 trillion less than February’s overseas Chinese tech stocks – one of the worst sell-offs in history, Goldman Sachs analysts said in a research report last week.
And since Didi’s shares tumbled after its New York IPO this month – a result of the massive scrutiny the rideshare company faced by Chinese regulators and US lawmakers – a wave of other Chinese companies has reportedly withdrawn from plans to go public to go to the United States.