Two Chinese startups suspended public listing plans in the U.S. in light of China’s crackdown on domestic companies looking to list overseas. Medical data firm LinkDoc Technology and digital fitness platform Keep have both pulled out following regulators’ probes into ride-hailing giant Didi Global, according to separate reports from the Financial Times and Reuters on Thursday (July 8).
Sources told Reuters that LinkDoc was in the midst of filing for a $211 million initial public offering (IPO) in New York but scrapped the plans after Beijing pulled Didi from app stores and from payment platforms WeChat Pay and Alipay. The move against Didi from Chinese regulators came just two days after it went public in the U.S.
LinkDoc is likely the first Chinese startup to have retreated from its IPO plans as China’s regulatory agencies stepped up Big Tech oversight. The move by officials prompted investors to unload Chinese stocks listed in the U.S.
Analysts told Reuters that despite the fact that U.S. public listings are not forbidden, the move by LinkDoc is expected to spark a…
