Chinese tech firms forced into ‘blood listings’ as capital dries up

A growing number of Chinese tech start-ups, once the darlings of equity markets, are willing to list shares publicly in China at valuations lower than during private funding rounds in so-called blood listings.

Unlike tech sector woes elsewhere, triggered mainly by rising interest rates, the misery in China comes from frothy tech markets and disruptions from harsh COVID-19 restrictions.

Public offerings at slashed valuations could translate into losses for venture capitalists in late funding rounds.

CloudWalk Technology Co, hailed as one of China’s “Four Dragons” in Artificial Intelligence (AI), debuts in Shanghai on Friday following an initial public offering that slashed its pre-IPO valuation by 29%.