Chinese tech firms eye US listings despite widespread ructions

The US market’s high liquidity is a lure for Chinese companies, while investment banks can earn higher fees on share sales

Published Tue, Apr 22, 2025 · 03:50 PM

Beijing Smart Walnut Education Technology, a provider of services that help children learn to code, is one of several Chinese firms considering initial public offerings in the US despite market turmoil and friction between Washington and Beijing, according to people familiar with the matter.

Walnut Coding, as Beijing Smart Walnut Education Technology is known, could seek to raise about US$100 million in a US listing, the people said, asking not to be identified because the deliberations are private.

Others exploring listings include computing infrastructure provider Shenzhen Cloudsky Technologies and software service platforms Zaihui and Zhonghe Group, the people said. Those three companies may seek to raise similar amounts, the people said.

No final decisions on the share sales have been made and the companies may decide not to proceed, the people said.

A representative for Walnut Coding, which has backers including private equity firms KKR & Co and Hillhouse Investment, declined to comment. Zaihui, Zhonghe and Cloudsky did not respond to requests seeking comment.

Fewer Chinese companies have listed in the US since Didi Global’s ill-fated share sale in 2021, which sparked a regulatory crackdown on the country’s Internet industry and an order for the ride-hailing firm to delist.

The US market’s high liquidity is a lure for Chinese companies, while investment banks can earn higher fees on share sales than in other venues such as Hong Kong.

Tea chain Chagee Holdings raised US$411 million this month after pricing its US IPO at the top end of the marketed range, defying the trade-war volatility. Its shares jumped 16 per cent on their debut. BLOOMBERG

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