Red tape clogs China’s offshore IPO pipeline even as markets recover

HONG KONG, June 3 (Reuters) – More than a year after China pledged to smoothen the process for offshore listings, firms are reeling from a regulatory logjam that is unlikely to ease soon, and staring at the prospects of sharply lower valuations even as market sentiment improves.

Hopes for a revival in overseas listings were sparked by Beijing’s vow in April to facilitate Hong Kong IPOs and a strong debut of Zeekr (ZK.N), opens new tab in New York last month. China has clamped down on offshore capital raisings since 2021.