Despite political tensions between two superpowers, China Securities Regulatory Commission (CSRC) delivers positive signals for China issuers to continue listing in the U.S. Not exceptionally, the giant operator of an ecommerce platform for industrial products, ZKH Industrial Supply Shanghai.
Recently, China’s market regulators took a risky step to authorize e-commerce company continues a $300m-$500m the U.S. IPO. Chinese issuers taking this route basically worried about the authorization. ZKH received a ‘no objection letter’ for the potential listing. A person acknowledging the ZKH deal, argued that the Chinese regulators might allow less sensitive company continues to list overseas.
ZKH is a private equity firm co-founded by Alibaba Group Holdings founder Jack Ma. Tencent Holdings is one of the company’s backers. ZKH itself owns more than 20.00 advanced manufacturing customers, said IFR Asia. Leaders of the float are from notable bankers such as China Renaissance and Goldman Sachs.
Actually, since July last year, the route for U.S. listings has broken down.
For instance, Meihua International Medical Technology, a medical devices company, listed merely as much as $36m. So, China to U.S. listings are in almost entirely postponement.
Amid the delisting risk including accounting issues between two countries, Liu He, China’s top economic official said publicly that Chinese regulators work on the specific cooperation plan. The plan is especially for the accounting issue. Somehow it is inline with Chinese big support on foreign listings. However, the U.S. The Public Company Accounting Oversight Board responded to the media that the deal was premature.
Furthermore, the U.S. regulators remain faithful to inspect companies that do not meet The U.S. Securities and Exchange Commission regulations. They even added another five U.S.-listed Chinese companies to get delisted. This is because the five companies fail to comply with the accounting rules or audits under the Holding Foreign Companies Accountable Act.
