On June 5, Bloomberg reported, citing people familiar with the matter, that underwriters for SpaceX's roughly $75 billion initial public offering have been told to reject subscription orders from investors in Chinese mainland and Hong Kong. The lead bank managing the deal has further notified other members of the underwriting syndicate that clients from these regions, including private banking clients, are not permitted to participate in the IPO.
The move is primarily driven by regulatory and compliance risks, with the key factor being U.S. restrictions on the export of critical space technology. SpaceX, a dominant force in the global space industry, possesses sensitive technologies in rocketry and satellite internet, which are subject to strict controls under U.S. export regulations such as the Export Administration Regulations (EAR). In recent years, the Committee on Foreign Investment in the United States (CFIUS) has repeatedly scrutinized or blocked investments tied to Chinese capital in strategic sectors, and this IPO restriction is seen as part of that broader policy.
The restriction was communicated privately among the underwriting banks and has not been disclosed in public offering documents. As of now, no official announcement has been made, and representatives for the lead underwriter and SpaceX have not commented on the matter.