Moonshot AI and other Chinese companies weigh corporate restructuring after Meta Manus trading reversal

ChainCatcher News, according to Benchmark Studio reports, after the China Securities Regulatory Commission (CSRC) issued inquiries to multiple companies regarding overseas shareholding structures, Chinese tech startups such as Moonshot AI, DeepRoute.ai, and others are currently evaluating the feasibility of relocating their company registration from overseas back to China. They are all discussing relevant plans with lawyers and have not yet made final decisions. Shanghai AI model developer StepFun has taken the lead in initiating the process of dismantling overseas shareholding structures to accelerate regulatory approval for a Hong Kong IPO.

The immediate trigger for the tightening of regulations was Meta’s $2 billion acquisition of Manus, an AI agency founded by Chinese entrepreneurs. Relevant authorities have ordered the withdrawal of this acquisition and triggered a systemic review of the “domestic operation, overseas registration” company model.

The process of dismantling red-chip structures is complex and usually takes six months to a year, involving steps such as repurchasing offshore equity, establishing joint ventures, and re-investing by investors. Additionally, after the joint venture company is listed in Hong Kong, it faces a lock-up period of up to 12 months, twice as long as that for ordinary red-chip stocks. Analysts point out that if red-chip structures are comprehensively restricted, it will significantly weaken Chinese startups’ ability to raise US dollar funding from overseas.