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diksha shah made post

Is it practically possible for all the large companies to delist from the US and list in China?

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shrinidhi Rajan answered.
2 weeks ago

I don’t think that is going to happen. Some large companies may look to list in Shanghai and Hong Kong as a back-up arrangement if the US markets create too many problems. That is where the Chinese Star Board is likely to come in handy. On the Star Board, the Chinese companies can list their stocks without too much of red tape and procedural hassles.

This Star Board goes back to late 2018 when it was launched by Xi Jinping when the trade war was escalating. China had launched the Star Board market where stocks could list in China with minimal procedural constraints. That is now becoming the attraction for mega IPO names like Ant Financial, which is the investment arm of Jackie Ma’s Alibaba Group.

The Star Board has helped raise over $50 billion in the last few months of the year and increasingly Chinese issuers are gravitating towards that market. Due to the prevailing tense situation, they prefer to launch their IPOs in the Chinese and Hong Kong markets. Over time, other large Chinese names like Tencent and Baidu are expected to follow suit.