Chinese tech start-ups are cancelling plans to list on markets at home

SHANGHAI/HONG KONG (Reuters) – A growing number of Chinese tech start-ups are cancelling plans to list on Nasdaq-style markets at home with some eyeing Hong Kong share sales instead, as regulators tighten scrutiny of IPO applicants after the halting of Ant Group’s $37 billion float. Over 100 companies have voluntarily withdrawn applications to list on Shanghai’s STAR Market and Shenzhen’s ChiNext since Ant’s termination of its initial public offering (IPO) in November, according to Reuters review of exchange filings. China launched STAR nearly two years ago with a US-style registration and disclosure-based IPO regime in a bid to dissuade its tech start-ups from tapping offshore bourses, and to fast-track listings. PRIVATE FUNDINGDaoCloud, a Shanghai-based cloud computing start-up, had planned a STAR IPO this year, but is now considering a Hong Kong listing instead, deterred by the likelihood of approval delays. Loss-making tech unicorns that have shelved their listing plans include Yitu Ltd, Unisound AI Technology Co and Shenzhen Royole Technologies Co, according to exchange data.