Companies from mainland China and Hong Kong have raised $ 6.6 billion through initial public offerings in the US this year, Bloomberg data shows. This figure is a record high compared to the beginning of the year and increases 8 times compared to 2020. In which, the biggest IPO deal is the listing of 1.6 billion USD of electronic cigarette manufacturer RLX Technology Inc. It was followed by a $ 947 million mobilization of software company Tuya Inc.

Worth mentioning, this comes amid tensions between the US and China with little sign of easing. Meanwhile, the threat of delisting Chinese companies on US exchanges remains.

In fact, last month, the US Securities and Exchange Commission (SEC) said it would begin implementing a law that would allow US regulators to review the auditing data of foreign businesses. Failure to comply will result in delisting on the New York Stock Exchange or the Nasdaq.

The act will put mainland Chinese companies at high risk as they have long refused to let US regulators check their accounts because of national security.

"They admit this is a potential risk and if something happens they could have a hard time," said Stephanie Tang, the head of Greater China ’s private equity at the law firm Hogan Lovells. "But the risk itself will not prevent those companies from coming to the US, at least in the second half of this year or next year".

Despite all the possible risks, the trend of Chinese companies listed above in the US is still up sharply. Expected, in 2021 is likely to exceed last year.

In 2020, the Chinese company listed nearly $ 15 billion through IPOs in the US, the second highest after the record level achieved in 2014 when Alibaba IPO in the US raised $ 25 billion.

"Chinese businesses in the new economy do not seem to hesitate to list in the US despite the ongoing tensions. They see it as one of the risks but that cannot stop them", Reviews Calvin Lai, a partner at Freshfields Bruckhaus Deringer.

Hong Kong in recent years has loosened the listing rules in order to attract listed companies here, but still has not prevented companies from coming to the US market.

In fact, many businesses have chosen both. After the first listing in the US, they will continue to list the second time in Hong Kong to mobilize more and to combat the risk of delisting in the US.

Such secondary listings have raised nearly $ 17 billion last year and more than $ 8 billion this year, Bloomberg data shows.