The intentions of the Chinese authorities to tighten supervision of businesses that have entered foreign exchanges will harm the prospects for listing local companies in the US, Report informs referring to Reuters.
In the future, this may affect their market value.
On July 6, the Chinese authorities announced their decision to tighten control over all Chinese companies whose shares are traded on stock exchanges abroad. They also intend to change the rules regarding the transfer of personal data to other states.
A few days earlier, Beijing had launched an investigation into local tech giant taxi aggregator DiDi, which had recently been listed on the New York Stock Exchange. After the decision of the Chinese authorities, its shares fell by 27 percent.
Now the activity of Chinese enterprises, which are preparing for the initial public offering (IPO), will slow down, experts predict.