[Asia Economy Reporter Yujin Cho] Chinese artificial intelligence (AI) company SenseTime has faced a setback in its Hong Kong stock market listing after being placed on the U.S. government’s investment ban list.
According to major foreign media on the 12th (local time), SenseTime decided to postpone its Hong Kong initial public offering (IPO) plan worth $767 million after being listed on the blacklist that prohibits investments by U.S. persons.
Being on the U.S. investment ban blacklist inevitably blocks investments from U.S. persons, which negatively impacts the success of the IPO.
Three sources confirmed SenseTime’s decision to withdraw its IPO plan, stating that the company plans to reflect this risk factor in its valuation and prospectus before attempting the IPO again.
Through this offering, SenseTime intended to issue 1.5 billion new shares at HKD 3.85 to 3.99 per share, raising a total of $767 million.
Earlier, major foreign media reported on the 10th that the U.S. Treasury Department planned to add SenseTime to the list of “Chinese military-industrial complex companies,” citing anonymous sources. According to an executive order signed by U.S. President Joe Biden in June, companies on this list are prohibited from receiving investments from U.S. persons.
Founded in 2014, SenseTime is China’s largest AI technology company, utilizing AI in facial recognition and autonomous driving. The U.S. government believes SenseTime’s facial recognition technology has been used by the Chinese government to monitor the Uyghur population in Xinjiang.
In a statement, SenseTime strongly opposed being placed on the U.S. government’s blacklist and said it would take appropriate measures to protect the interests of the company and its stakeholders.
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