The Chinese government's crackdown on the tech sector made the businesses seek loopholes in the current legislation. It absolutely makes no sense to count on the rule of law in the authoritarian regime, but there is at least a chance to save time.
The Chinese electric vehicle maker Li Auto plans to bypass the authorities' ban on stock offerings. It aims to list its shares on the Hong Kong Stock Exchange. The management of the company intends to expand its investor base, though the Chinese authorities banned stock listing by local companies on foreign stock exchanges without a cybersecurity check. If everything goes as planned, the vehicle maker will also ensure itself against leaving the US market.
It is Li Auto’s second listing. During its first IPO on the Nasdaq, the company raised $1.3 billion. Now it seeks to raise up to HK$15 billion ($1.9 billion) by listing 100 million shares worth HK$150 ($19.3) each.
However, Beijing implements more severe measures for large Chinese tech companies. In recent times, many business owners have been sentenced, have partially or completely lost their companies, or at best have been obliged to donate to charity. In June, Wang Xing, Meituan founder, had to donate company shares worth $2.3 billion. The reason was the investigation by the Chinese antimonopoly service. It discovered an implicit criticism of the government in a classic poem published in the billionaire's social network. In July, Xiaomi co-founder and CEO Lei Jun donated $2.2 billion shares in the smartphone maker to two charitable foundations.
