Chinese Companies Prefer Not to Go Public in the U.S.!

Chinese Companies' IPO Preferences Are Changing

The increasing political and trade tensions between Beijing and Washington are becoming a decisive factor in Chinese companies' initial public offering (IPO) preferences. New regulations and rising uncertainties are causing these companies to move away from US markets and direct their attention to regional markets like Hong Kong.

Decline in US Markets

As of 2023, the total transaction value of Chinese companies' IPOs in the US has decreased by approximately %4, declining to $875.7 million. During this period, only 23 transactions were carried out. These figures reveal a rapid decline in the financial integration observed between China and the US in recent years.

Shift to Regional Markets

Peihao Huang, Head of Asia Pacific Equity Capital Markets at JPMorgan, draws attention to this shift in Chinese companies' orientation. Huang stated, “Chinese companies are returning to regional markets. We expect a very strong portfolio, an extremely dynamic fourth quarter, and the first half of 2026,” highlighting future market activity.

Future of Market Dynamics

These developments may have significant effects not only on the financial strategies of Chinese companies but also on global financial markets. Particularly, the tightening of US market regulations may further reinforce this situation, while Hong Kong's competitive advantages could attract more investors in the Asian market.