Chinese regulators have instructed leading domestic chipmakers to list within the mainland, aiming to tighten control over the types of investors who can buy stakes in these strategically vital firms, IFR reported, citing sources.
This move is part of Beijing's broader strategy to strengthen its semiconductor industry amid an ongoing chip war with the United States.
The report highlighted that ChangXin Memory's shift in listing plans came in response to advice from regulators. While the company had previously considered a Hong Kong IPO this year, it began pre-listing guidance with CICC and CSC Financial in July to pursue a domestic A-share listing instead.
According to sources, regulators are wary of Hong Kong IPOs due to the difficulty in verifying the ultimate beneficial owners behind international investors. Given the chip dispute, authorities particularly want to prevent large shareholdings from falling into the hands of US investors.
Foreign participation in A-share IPOs is primarily channeled through the strictly regulated Qualified Foreign Institutional Investor (QFII) scheme, allowing regulators to maintain stricter oversight over investor types.
