On June 5, TechFlow Post reported, citing Bloomberg and people familiar with the matter, that underwriters of SpaceX’s approximately $75 billion initial public offering have been told they cannot accept subscription orders from investors based in mainland China and Hong Kong. The decision is linked to U.S. restrictions on the export of critical technologies.
The lead underwriter has further informed other banks in the syndicate that clients from mainland China and Hong Kong are not allowed to place orders, including private banking clients. This arrangement, which has not been publicly disclosed, is said to be driven by regulatory and compliance risk considerations. Given that SpaceX operates in the aerospace sector, which involves highly sensitive rocket and satellite technology, U.S. authorities maintain strict scrutiny over foreign participation in related capital markets.
The SpaceX IPO remains a focal point of global financial markets. For investors in mainland China and Hong Kong, the restriction means they will be shut out of directly participating in one of the largest listings in recent years.