Xi To Ban Some Overseas Tech IPOs, Erases Celebrities
Chinese tech shares may have managed to close out another tumultuous week with a gain -- were it not for reports that Beijing is now set to block US IPOs for companies with vast stores of consumer data.
Citing the ubiquitous people familiar with the matter, Dow Jones said China’s stock regulator this month "told some companies and international investors that the new rules would prohibit internet firms holding a swath of user-related data from listing abroad... via units incorporated outside
So Xi has carved out pharmaceuticals. Raise capital in the US to fund bio weapons? How thoughtful of him.
Lost in today’s narrative – the Chinese government also announced a crackdown on companies which require “996” hours (9 to 9, six days a week.)
How awful! First rules to require gig economy workers, especially delivery couriers, to be paid a living wage. Now this! It’s horrible!!
They should be following the US game plan and reduce unemployment benefits and Medicaid to force people to work more and more for less and less.
+1
Sarcasm will get you anywhere.
Interesting anecdote. Last week we spoke to a VC and equity fund manager on the ground in China. While he lost money when the for-profit cram schools were abruptly shut, he sympathized with the motive behind the move. He noted that the industry was rapacious and pushed many Chinese parents close to bankruptcy.
It’s similar to US parents pouring thousands of dollars they can ill-afford into premier sports teams to try and help their kids into Dartmouth or maybe even get a scholarship somewhere.
It once was said that one big advantage China had over India was that the PRC government can get things done. Alas. that can cut both ways..
Speaking of India – did any of you notice that India apparently is starting to roll out video surveillance systems at the most heavily travelled rail stations? But in a nod to data security, they are using equipment from a Russian start up rather than a Chinese vendor
I’m investing in Chinese stocks. All my best things are in hock.
As you point out, it is a mistake to apply US or western values to China. China has its own culture and political backdrop which must be accounted for when investing or analyzing society or politics.
This is all entertaining to watch from the sidelines. But . . .
If you “must” have China equity exposure, for whatever reason, what do you do? How are folks solving that problem?
If XI wants the legacy enjoyed by Mao he needs to keep in mind that especially in the East leaders can go too far and be erased as easily as celebrities. As much as everyone likes to say Reagan was largely responsible for busting the “Wall” it was American consumer goods and celebrities who got the young people to realize what they were missing. The Russians couldn’t hold backs its kids forever and I doubt the Chinese will either, in spite of the culture. Time will tell.
(Because pharma companies hold no sensitive data, apparently.)
Bitingly funny, H…thanks