It’s not often that China-based executives from major venture capital and private equity firms, including Sequoia Capital’s Neil Shen and DCP’s David Liu, come together as a group to voice their concerns about China’s securities regulator. But an opportunity arose in late July when the two were among dozens of investors who met with the China Securities Regulatory Commission to discuss the challenges facing private investment in China.
According to a person present at the meeting, the discussion was fueled by concerns about how long it would take for the regulator to approve IPOs for Chinese firms planning to go public overseas. A new set of guidelines issued by regulators earlier this year — prompted in part by Didi Global’s disastrous IPO in New York two years ago — has stalled the overseas IPO approval process for any company with major operations in China devices. The new rules govern public offerings in Hong Kong and the US and aim to fill a loophole that had allowed companies like Didi to list shares without the express approval of Chinese authorities.
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