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Despite increasing regulatory crackdowns on Chinese technology companies, ByteDance, the owner of the short video app TikTok, has resumed its listing plan, with the goal of listing in Hong Kong early next year.
Chinese group, Propose about Three people familiar with the company’s plans said that the company went public in December at a valuation of US$180 billion, and the company plans to go public in the fourth quarter of this year or early 2022.
Rear put off ByteDance is listed overseas this year and has been responding to the problems of Chinese regulators in the past few months Data security issuesA person familiar with the matter said, including providing the authorities with more details on how it stores and manages consumer information.
“We look forward to the final guidance of ByteDance in September. They are now submitting all documents to the Chinese authorities and are undergoing review procedures,” the person added. Bytedance declined to comment.
Bytedance, its video application TikTok is very popular In the West, an expansion in Beijing this year Months of repression The country’s largest technology group is suspected of violating data security and monopoly laws.
Chinese officials swear Tighter supervision Overseas listings are part of the government’s concern for national security.
Bytedance’s decision to suspend its initial public offering has earned it more goodwill than Chinese ride-hailing app Didi Chuxing, which promoted a $4.4 billion New York listing in June, despite the country’s Internet regulator attract attention One of them added about its data security practices.
National Cyberspace Administration Announces Investigation of Didi Almost immediately After the initial public offering, its main application was ordered to be removed from the Chinese application store.
Then the regulator Publishing rules Any company with more than 1 million users is required to pass a data security review before being approved for overseas listing to ensure that sensitive user information cannot be obtained by foreign regulatory agencies.
According to a person familiar with the matter, ByteDance and China’s cybersecurity regulator “held meetings similar to Didi and the All Truck Alliance.”Truck-hailing company Full Truck Alliance is Also under investigation After being listed in the US in June.
The person said that after the meeting, Bytedance “decided not to continue listing in New York.”
People familiar with the matter warned that, given the rapid changes in the regulatory environment of the Chinese technology group, the plan may still change. TikTok’s competitor Kuaishou’s stock Plummet After the official media urged stricter supervision of Internet video, the percentage on Friday was close to 12%.
ByteDance’s listing has experienced many setbacks.
The hesitation in going public earlier this year was also due to the founder Zhang Yiming’s departure in May.
ByteDance is also working hard to resolve national security issues in the United States.The company agreed last year List TikTok After reaching a cooperation agreement with the American software group Oracle, it was listed on the US stock market, in part to meet the requirements of the Trump administration.
But the deal involving the sale of TikTok’s US operations to Oracle was shelved after Donald Trump withdrew from the White House.
The Biden administration stated in February Review Its predecessor banned TikTok’s efforts in the country.
ByteDance considered listing in New York as early as 2019, but its eyesight has become firmer since then at Hong KongAccording to people familiar with the matter.
After China cracked down on overseas listings, this plan was confirmed this year. “We tell customers, if you are a Chinese company of any size, please focus on Hong Kong IPO, Forget America For now,” said a senior partner in a corporate law firm.
Bytedance’s revenue more than doubled last year to more than 34 billion U.S. dollars and gross profit reached 19 billion U.S. dollars. It has approximately 1.9 billion monthly active users.
Additional report by Ryan McMorrow in Beijing
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