After years of decoupling and geopolitical tension, Chinese companies are once again testing the waters of U.S. capital markets—signaling a possible reopening of a financial corridor that had all but frozen.

Several Chinese businesses have quietly filed or are preparing to file for initial public offerings on U.S. exchanges, buoyed by improving relations between financial regulators in both countries and a renewed appetite for cross-border investment.

IPO Pipeline Begins to Stir

Among the companies making moves is Zeekr Intelligent Technology, an electric-vehicle subsidiary of Geely, which went public on the New York Stock Exchange last month. Others—ranging from consumer tech startups to industrial suppliers—are either in active talks with underwriters or in the early stages of regulatory review, according to people familiar with the matter.

These developments mark a subtle but meaningful shift from the freeze that followed Beijing’s crackdown on overseas listings in 2021, triggered by Didi Global’s high-profile U.S. debut and subsequent regulatory fallout.

Regulatory Landscape Improves

Much of the renewed momentum is attributed to a 2022 audit inspection agreement between U.S. and Chinese regulators, which allowed American officials to review audit papers of Chinese firms for the first time. This deal averted mass delistings and restored a baseline of trust in financial disclosures, a key hurdle for U.S. listings.

Investment banks say the agreement has helped reduce perceived risk, opening the door for companies that had shelved or canceled IPO plans during the height of regulatory uncertainty.

Cautious Optimism Remains

Still, enthusiasm is tempered by lingering geopolitical friction and market conditions. The Biden administration continues to scrutinize Chinese tech firms, and investor sentiment remains cautious following volatile debuts in the past. Additionally, many Chinese companies are opting for dual listings or secondary offerings in Hong Kong to hedge against potential disruptions in U.S. markets.

Even so, for firms seeking broader investor exposure, deeper liquidity, and higher valuations, the U.S. remains an attractive—if carefully approached—destination.

“This isn’t a floodgate reopening,” said one Hong Kong-based banker advising Chinese firms. “But the door is no longer shut.”

By Staff Writer, Courtesy of Forbes | June 22, 2025 | Edited for WTFwire.com
Source: The Wall Street Journal