-- Shanghai-based artificial intelligence company StepFun is dismantling its Cayman Islands holding structure for a Hong Kong listing, as Beijing cracks down on red-chip vehicles long used for overseas fundraising, Reuters reported Monday, citing three sources.
China's securities regulator recently ordered offshore-registered companies with China-based assets to unwind the setup, according to the report. StepFun, which develops general-purpose foundation models, now sees an onshore structure as more suitable due to its heavy state backing.
Meanwhile, AI peer Moonshot, creator of the Kimi language model, is also reconsidering its offshore incorporation, Reuters wrote.
Moonshot is raising $1 billion at an $18 billion valuation and could pursue a Hong Kong IPO later this year, according to the report.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)