Tuesday, June 11, 2024

China's anti-growth policy

...China’s stockmarkets began falling in the second half of 2023, then plunged in early 2024 (see chart).

This led to regulatory scrutiny of new IPO's 

...On top of on-site inspections, regulators now review companies’ past business deals and trawl through executives’ bank accounts, according to Reuters, a news agency. Faced with this, at least 80 companies withdrew their ipo applications in the first quarter of 2024.

When IPO exits are harder, fewer VC's want to invest:

...Just five Chinese companies listed on domestic bourses in April, down from 35 in April 2023. The ipo market raised 80% less capital in the first four months of 2024 than in the same period the previous year.

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