SpaceX IPO of $75 billion bars Chinese investors

The IPO of SpaceX, valued at no less than $75 billion, is not accessible to investors from China and Hong Kong. Banks involved in the underwriting syndicates have been instructed to refuse orders from those regions. The reason cited is US restrictions regarding the export of critical technology.

Banks receive strict instructions

According to Bloomberg, the lead banks managing the deal are informing other banks in the syndicate that clients from Hong Kong and China, including private banking clients, may not place orders for the share issue. The reason: regulatory and compliance risks directly linked to US export rules for critical technologies.

The people confirming this to Bloomberg have asked to remain anonymous because the matter is confidential. It therefore concerns internal communication within the financial sector, in which banks are explicitly warned not to allow orders from the aforementioned regions.

Geopolitical tension surrounding SpaceX IPO

The exclusion fits into a broader trend in which the US increasingly shields technology companies from Chinese investments. SpaceX, the space company of Elon Musk, works closely with the US government and possesses sensitive technologies. This makes participation by investors from China or Hong Kong legally and politically complicated.

The $75 billion valuation makes this IPO one of the largest in recent years. For investors outside the excluded regions, interest remains high, but the geopolitical dimension clearly takes its toll on the accessibility of the deal.