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4 years ago

China's Ximalaya drops US IPO plans

Chinese and US flags flutter outside the building of an American company in Beijing, China on January 21, 2021 — Reuters/Files
Chinese and US flags flutter outside the building of an American company in Beijing, China on January 21, 2021 — Reuters/Files

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China's largest online audio platform Ximalaya said on Thursday it had decided not to proceed with its plans for an initial public offering (IPO) in the United States.

The move comes after Reuters reported in May that China was pressing Ximalaya to drop its plans to list in the United States and go for Hong Kong instead, showing how authorities are seeking to further tighten their grip over private media and internet businesses, reports Reuters.

Medical data group LinkDoc Technology Ltd in July became the first Chinese company to shelve plans for an IPO in the United States due to Beijing's clampdown on overseas listings by domestic firms.

Ximalaya, backed by China's Tencent Holdings, had filed for an IPO in April.

Chinese and US regulators alike have been tightening their grip on US listings of Chinese tech firms over the past few months.

Last month, Reuters reported that China was framing rules to ban internet companies whose data poses potential security risks from listing outside the country.

The US Securities and Exchange Commission (SEC) also began issuing new disclosure requirements to Chinese companies who are looking to list in New York, in an effort to boost investor awareness on the risks involved, Reuters reported in August.

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