Chinese Companies Rush for US Listings ahead of New Rules

An Xpeng Motors showroom at the company's headquarters in Guangzhou, China. Reuters
An Xpeng Motors showroom at the company's headquarters in Guangzhou, China. Reuters
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Chinese Companies Rush for US Listings ahead of New Rules

An Xpeng Motors showroom at the company's headquarters in Guangzhou, China. Reuters
An Xpeng Motors showroom at the company's headquarters in Guangzhou, China. Reuters

The number of US IPOs by Chinese firms jumped in March, as some of them rushed to set up offshore listings before rules take effect that will complicate the process, though with markets jittery, several met with a tepid response.

Seven Chinese firms including Chanson International and Hongli Group have launched public offerings in March to raise a combined $82.3 million, compared with just four in the preceding two months, Reuters reported.

Although the numbers are not huge, the surge stands out since only six mainland China-based companies launched US IPOs in 2022 as Sino-US tensions and in particular strict regulatory scrutiny on both sides hurt investor demand for such listings.

China's new rules, published in February and which take effect on March 31, are aimed at reviving the path for international offerings, which all but disappeared in the wake of regulatory crackdowns beginning in the middle of 2021.

They also impose an approval system on a once freewheeling market, with a focus on national and data security, hence the hurry from some firms to get in ahead of them.

"There is obvious acceleration in Chinese companies seeking US offerings this month, considering the uncertainty posed by the new offshore listing rules," said Stephanie Hu, head of Asia, investment banking at EF Hutton, which was a bookrunner on Chanson's listing.

The new system requires submitting materials to the China Securities Regulatory Commission (CSRC) and getting the green light from relevant government bodies.

That will "reduce regulatory uncertainty" said Mandy Zhu, head of China Global Banking at UBS, and standardize domestic firms' international listings.

It is also likely to be time consuming.

Among the new listings was bakery chain Chanson International, which debuted on the Nasdaq on Thursday.

"It is, indeed, that we don't need to get approval from associated departments of China if we get listed before March 31," chairman and CEO Gang Li told Reuters.

"But we will abide by Chinese rules and carry out all follow-up work cooperation if necessary."

The listing raised a modest $13.6 million, and fell heavily in its first day of trading and closed almost 40% below the issue price, perhaps a sign that markets roiled by banking jitters are in little mood for small Chinese listings.

Earlier in the week, steelmaker Hongli Group, food grain manufacturer YanGuFang International Group and wheelchair-maker Jin Medical International listed in the US, also receiving tepid responses from investors.

Reuters reported on Thursday that London is also courting new Chinese listings.



ACWA Power Reports 44% Surge in Q1 Profit to $113.8 Million

A wind turbine at the Suez Energy Project. (ACWA Power)
A wind turbine at the Suez Energy Project. (ACWA Power)
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ACWA Power Reports 44% Surge in Q1 Profit to $113.8 Million

A wind turbine at the Suez Energy Project. (ACWA Power)
A wind turbine at the Suez Energy Project. (ACWA Power)

Saudi energy and water developer ACWA Power reported a 44% year-on-year increase in net profit for the first quarter of 2025, reaching SAR 427.15 million ($113.8 million), according to a disclosure filed with the Saudi Stock Exchange (Tadawul).

The company attributed the strong performance primarily to higher total revenues, an increase in other operating income before impairment and other charges, a reduction in impairment expenses, and a rise in deferred tax balances. These gains were partially offset by increased costs in project development, general and administrative expenses, and financing charges.

ACWA Power’s revenue rose 57% in the quarter, reaching SAR 1.97 billion ($525.2 million), supported by growth across development and construction management services, operation and maintenance contracts, and electricity sales.

In a letter to investors, CEO Marco Arcelli emphasized that the company maintained strong momentum in developing new projects across all sectors during the first quarter.

These initiatives not only lay the foundation for stable future revenues and cash flows, but also contribute to earnings from procurement and construction management, reinforcing the company’s commitment to financial and operational growth, he noted.

Arcelli expressed optimism about the company’s long-term outlook, highlighting ongoing efforts to strengthen project development pipelines, improve procurement strategies, and streamline construction execution.

ACWA Power is building a solid platform for consistent and sustainable growth while remaining focused on delivering its strategic objectives, he stressed.

Among the company’s most significant recent projects are several in renewable energy and water. In the solar sector, ACWA Power is developing the Al-Muwayh solar power plant in Saudi Arabia with a capacity of 2,000 megawatts and an investment of approximately SAR 35 million. The plant is scheduled to begin operations under a long-term power purchase agreement starting in 2027.

The company is also working on the Al-Khushaybi solar plant, with a capacity of 35 megawatts.

In wind energy, ACWA Power is constructing the Bash wind farm in Uzbekistan, a 500-megawatt project expected to be operational in the first quarter of 2025. Another wind project in collaboration with Uzbekistan’s national energy company will have a capacity of 65 megawatts and is also scheduled for completion in 2025.

In the water sector, ACWA Power owns a 40% stake in the Taweelah desalination plant in the United Arab Emirates, one of the largest facilities of its kind with a daily capacity of 3 million cubic meters. The company also holds a 35% share in the Sudair solar project in Saudi Arabia, which will generate 1,500 megawatts of electricity.

ACWA Power has expanded its international footprint with recent acquisitions, including an 85% stake in Yanghe New Energy Technology in China. The company also acquired strategic assets in Egypt and Kuwait and is actively entering new markets while expanding its presence in existing ones.

The company continues to prioritize innovation and R&D, particularly in solar and wind energy, green hydrogen, and energy storage. It is advancing new projects, increasing energy sales, and strengthening its global presence through strategic partnerships, including collaborations with Italian firms and others in Africa and East Asia.

ACWA Power has also launched a new research and development center in Shanghai as part of its international growth strategy.