Mar 27, 2024 09:07 PM
FINANCE
In Depth: China IPO Slowdown Pits Startups Against Investors
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China has slowed the pace of IPOs over the past year as part of a strategy to support the stock market. That’s spelled bad news for listing hopefuls and their private equity and venture capital investors who want to cash out. Photo: AI generated
China’s depressed stock markets and a slowdown in IPO registration by regulators have sent a chill through the world of private equity (PE) and venture capital (VC) firms, whose funds have traditionally chosen listing as the most popular exit channel for their Chinese investments.
The market downturn has spelled trouble for many IPO hopefuls and created a rift between them and their PE/VC investors that is increasingly leading to arbitration or litigation when companies fail to follow an agreed timetable to go public and allow funds to exit.
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