The effect of the Chinese regulations and the business slowdown is already taken effect. The Chinese companies are leaving the American shores.
This has naturally made the US markets seek a replacement. This time they have turned towards the companies from India and South-East Asia. They are actively trying to pursue the companies from this region that are largely absent in the US.
The companies from this region are also looking forward to their entry into the US stock market since the US fallout with China during Trade War. This drying up of Chinese streams in this time of crisis is also causing revenue loss for the stock market.
Analysts have high hopes in this region, which they consider as an untapped resource. The number of companies listed increased from a few hundred a few years ago to dozens. They hope it could be a good alternative for China as a big source of business.
Chinese IPOs in US stock markets have been on a decline since the Trade War. The Chinese government aggravated the situation by increasing regulation over the companies that have crossed the borders and also raising storms over data sharing.
This week FWD became the latest exit of a Chinese company from floating in the US market, under the fear of regulation by the Chinese and the Americans.
Didi Chuxing exit after their stellar IPO performance became another latest high-profile exit.
According to the data from Refinitiv, Chinese companies have made more IPOs in the US market in 2021 alone than companies from the Asia-Pacific region over the past decade.
If the listing from this region flourishes in this market, it would be a real game-changer.
NYSE and Nasdaq exchange officials have been focusing on this region for a long-time, with a special eye over India and Indonesia. They are also looking forward to listing from Vietnam and Malaysia.
To make matters more favourable in December, a Singapore-based tech group, Grab listed in Nasdaq through a SPAC with Altimeter Growth Corp.
But one of the target nations, India places restrictions on companies complicating their IPO debut in foreign markets.
Azure Power is the only Indian company that completed an IPO in the US. But change is here, as Coforge and Byju’s are trying their IPO debut in the US.
That has created optimism in the market, who are hopeful that these companies will find a way out of these restraints.
Even though they are looking forward to a China-less US stock market, replacing them is not easy. Almost 80 private companies from the Asia-Pacific are worth just more than $1bn, which is incomparable to $128bn worth Alibaba company alone.
Even the US market seems to not be a single destination for the companies from this region. It was proved after J&T; an Indonesian delivery group is preparing to list in Hong Kong.
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