Deep Tide TechFlow reported on June 5, citing Bloomberg and unnamed sources, that SpaceX’s pending approximately $75 billion initial public offering has been structured to exclude investors from mainland China and Hong Kong. The lead underwriter was instructed not to accept orders from these jurisdictions, and the ban was communicated to all syndicate members, including private bank clients, effectively shutting out high-net-worth individuals in those regions.
Sources indicated that the restriction is rooted in U.S. controls on the export of critical technology. The underwriting banks made the arrangement primarily out of regulatory and compliance risk considerations. Details of the move have not been publicly disclosed, and SpaceX and its underwriters have not responded to requests for comment.
The Committee on Foreign Investment in the United States (CFIUS) and other agencies have in recent years tightened scrutiny of foreign capital entering sensitive technology sectors, with aerospace a key focus. SpaceX, founded by Elon Musk, is a leading commercial space firm known for reusable rockets and the Starlink satellite network; its Falcon 9 rocket and Crew Dragon capsule have logged multiple successful missions. The company’s soaring valuation had made this IPO a highly anticipated event, but geopolitical factors have now sidelined mainland Chinese and Hong Kong investors. This development underscores how U.S. technology export curbs are directly shaping international capital flows.