Article: China’s Megvii kick-starts IPO on Shanghai’s Star Market after Trump added facial recognition giant to entity list

Article Details

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5 / 10

AI Summary (Processed Content)

Chinese facial recognition and AI firm Megvii has initiated an IPO on Shanghai's Star Market. This move follows the lapse of its earlier Hong Kong IPO application after the company was placed on a U.S. trade blacklist in 2019.

The company is now turning to China's domestic market, leveraging supportive policies and receptive local investors to fund its expansion. The Star Market was established to support Chinese tech companies, allowing unprofitable firms in strategic sectors like AI to list domestically.

The main topics covered are Megvii's IPO shift from Hong Kong to Shanghai, the impact of U.S. trade sanctions, and China's strategic support for its domestic technology sector through capital markets.

Original URL

https://www.scmp.com/business/banking-finance/article/3117539/chinas-megvii-kick-starts-ipo-shanghais-star-market-after?utm_source=rss_feed

Source Feed

Innovation - South China Morning Post

Published Date

2021-01-13 06:25

Fetched Date

2026-03-04 14:32

Processed Date

2026-03-04 15:09

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Present

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Not Clustered

Raw Extracted Content

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China’s Megvii kick-starts IPO on Shanghai’s Star Market after Trump added facial recognition giant to entity list
- The Beijing-based owner of Face++ software has kick-started an initial public offering on the Nasdaq-like exchange in Shanghai
- Megvii let its US$500 million Hong Kong IPO application lapse in February last year after finding itself on a Washington trade blacklist
3-MIN READ3-MIN
China’s Megvii Technology, one of the foremost developers of facial-recognition technology, is looking to favourable policies and more receptive investors at home to help bankroll its expansion in artificial intelligence.
The Beijing-based owner of facial-recognition software Face++ has kick-started an initial public offering (IPO) on the Nasdaq-like Star Market in Shanghai. The Post reported in April that it was mulling such a plan.
Megvii attempted to list in Hong Kong but let its application lapse in February last year after it was included on the Trump administration’s trade blacklist in October 2019. Inclusion on the blacklist meant that investment banks and overseas investors were likely to eschew taking part in the listing.
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China is nurturing local hi-tech companies to fulfil its ambitions of becoming the global leader in fields such as artificial intelligence by 2030 and trying to offset any damage to promising start-ups from the US-China trade war.
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The Shanghai Stock Exchange launched the Star Market in mid-2019, bringing together Chinese tech companies and domestic investors. The Nasdaq-styled board allows unprofitable companies in areas such as AI, cloud computing, biotech and green energy to list in China for the first time.
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