According to sources familiar with the situation, major Chinese businesses with U.S. listings, such as Pinduoduo Inc. and Full Truck Alliance Co., have suspended talks regarding a future Hong Kong offering.
In light of tense relations between the two largest economies in the world, the report was released shortly after a U.S. accounting watchdog announced it had complete access to inspect and investigate firms in China for the first time ever. This removed the threat that 200 Chinese companies might have been delisted from U.S. stock exchanges.
According to the article, although conversations over a future Hong Kong IPO have been put on hold by the Chinese e-commerce giant, Full Truck Alliance has abandoned its long-standing intention.
Over the past several years, businesses like Alibaba Group Holding and JD.com have made the decision to list in Hong Kong as well to reduce their risk of being delisted in the United States as a result of political tensions with China.
According to sources, a request for comment was not immediately answered by Pinduoduo and Full Truck Alliance.
