On March 2, Price Waterhouse Coopers released data on initial public offerings (IPOs) in China’s media and telecommunications in the second half of 2021. It showed that the proportion of Hong Kong and overseas IPOs in total listings dropped steeply from 82% in the first half to 25% in the second half.

In the first six months of 2021, 14 mainland Media and Telecommunications (TMT) companies were listed in Hong Kong, raising about $17.5 billion, and 20 listed in the U.S., bringing in $10.3 billion.

In comparison, in the second half of 2021, only eight mainland TMT companies were listed in Hong Kong, mainland China, and overseas, raising approximately $5.9 billion.

None of the mainland TMT companies were listed in the U.S. in the second half of 2021. However, on Feb. 16, 2022, MMC International officially landed on NASDAQ, the first Chinese company listed in the U.S. after seven months, following the listing of DiDi.

DiDi, a Chinese online car-hailing giant, was hit by a regulatory crackdown after its IPO on June 30, 2021. As a result, the company announced on Dec. 3 that it would launch preparations for its NYSE delisting and Hong Kong listing.

DiDi and other Chinese firms were surrounded by legal risks onshore and offshore.

According to the Holding Foreign Company Accountability Act, passed in 2020, Chinese companies will face delisting in the U.S market if they do not meet the U.S. Public Company Accounting Oversight Board’s inspection requirements in three consecutive years.

Reuters reported on Jan. 28 that Chinese bourses had halted processing at least 60 IPO applications as Chinese authorities have investigated their accounting fraud.

For example, China Securities Regulatory Commission accused Leshi Internet Information and Technology Co of tax evasion in March 2021.

12 IPO proposals were halted in Shanghai’s tech-heavy STAR Exchange, and 48 in Shenzhen’s start-up market ChiNext.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.