China’s Kujiale, Lalamove Suspend U.S. Listing Plans, Search for Alternatives

As China’s tech startups shelve plans to go public in the U.S. due to Beijing’s cybersecurity crackdown, one question is whether they will pursue initial public offerings in Hong Kong instead. But Hong Kong listings may be challenging for tech companies in industries such as software as a service, autonomous vehicles and ride hailing, founders and investors say.

The escalating crackdown has caused a wide range of Chinese tech startups—such as home design software maker Kujiale and on-demand–delivery firm Lalamove—to put their U.S. IPO preparations on hold, according to people familiar with their IPO discussions.