Chinese companies rush to dismantle red-chip structures, FT reports

Groups including Tencent-backed (0700) AI start-up StepFun and fast-food chain Home Original Chicken have rushed to dismantle their “red-chip” structures ahead of planned overseas listings following Beijing’s tighter scrutiny of foreign capital, the Financial Times reported on Wednesday.

Reuters could not immediately verify the report.

Red-chip firms are registered abroad, mainly in tax havens, but hold assets and businesses in China via equity ownership.

Reuters

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