TechFlow News, May 2nd: According to The Information, following the suspension of acquisition plans for AI agent company Manus, China’s Securities Regulatory Commission (CSRC) has tightened its review of Hong Kong IPO applications by companies with “red chip” structures. As a result, several AI companies planning to go public are now evaluating options to dismantle their overseas structures and restructure as domestic entities. Moonshot is currently consulting with legal counsel regarding corporate restructuring but has not yet reached a final decision. StepFun has already initiated the dismantling of its overseas holding structure, believing that transitioning to a domestic entity will help shorten regulatory approval timelines. DeepRoute.ai is also conducting a similar assessment. Industry insiders note that dismantling a red chip structure typically takes six to twelve months and involves processes such as share repurchase, establishment of joint-venture entities, and tax-related arrangements. While regulators have not issued a comprehensive ban, they have begun querying relevant companies about their overseas holding structures.
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