US fire-sales weigh on China IPO

摘要

SMART SHARE CLOBAL, an Alibaba-backed Chinese power bank rental start-up, downsized a US$150m Nasdaq IPO last week as the threat of mass delistings and a string of fire sales in US-listed Chinese stocks dented investor appetite. Smart Share Global opened books on Tuesday after a turbulent week for US-listed Chinese companies. The entire sector fell heavily on March 24, when the US Securities and Exchange Commission said it would begin implementing legislation that calls for the delisting of companies that fail to comply with US audit oversight requirements for three years in a row. On top of that, a series of massive margin calls related to hedge fund Archegos Capital Management triggered fire sales of billions of dollars in individual Chinese stocks. The stocks sold were Baidu, Vipshop, Tencent Music Entertainment, iQiyi and GSX Techedu.