Chinese investors use cryptocurrency to access U.S. IPOs
Ordinary Chinese investors are using digital assets to gain exposure to U.S. IPOs such as SpaceX and OpenAI. The Financial Times reported that these assets purport to track underlying stocks despite Beijing's ban on converting cash into cryptocurrency.
SemaforOrdinary Chinese investors are turning to digital assets to gain exposure to U.S. IPOs such as SpaceX and OpenAI. The workaround involves cryptocurrency that purportedly has exposure to the underlying stocks, the Financial Times reported, despite Beijing's ban on converting cash into crypto.
There are concerns that these securities are not all legitimate, showing how far the investors are willing to go to take advantage of the U.S. market. Chinese tech stocks have wavered this year amid scrutiny of steep AI spending and broader market volatility.
Some Chinese AI startups have gone public, but their valuations pale in comparison to their American counterparts.
