Chinese investors seek SpaceX IPO alternatives after being locked out
Mainland Chinese investors are scrambling for alternative ways to gain exposure to SpaceX's historic IPO, after being barred from direct participation due to regulatory and compliance concerns. The company has excluded investors from mainland China and Hong Kong, as reported by Bloomberg News. With shares priced at $135 each and a target valuation of about $1.8 trillion ahead of its Nasdaq debut on Friday, the IPO is expected to be one of the largest ever. Blocked investors are turning to offshore accounts, A-share proxy stocks, and broader commercial-space-themed investments. Even experienced cross-border traders face obstacles. The frenzy reflects widespread fear of missing out on Elon Musk's rocket and satellite internet giant.
Key facts
- SpaceX has barred investors in mainland China and Hong Kong from its IPO.
- The IPO shares are priced at US$135 each.
- SpaceX aims for a valuation of about US$1.8 trillion.
- The Nasdaq debut is expected on Friday.
- Mainland Chinese investors are using offshore accounts, A-share proxy stocks, and commercial-space-themed investments as alternatives.
- Bloomberg News reported the exclusion citing regulatory and compliance concerns.
- The IPO is expected to be one of the largest listings ever.
- Even seasoned cross-border traders are hitting a wall.
Entities
Institutions
- SpaceX
- Bloomberg News
- Nasdaq
Locations
- mainland China
- Hong Kong