January 25, 2021


ByteDance to Raise 2 Billion Dollars Before Probable Hong Kong Listing

As per a report, ByteDance is in talks to raise 2 billion dollars from investors before an imaginable listing of some of its businesses in Hong Kong.

The plan could ultimately value ByteDance at an enormous 180 billion dollars.

It could lead to ByteDance being finally listing some of its chief assets, like Douyin which is the Chinese version of TikTok.

ByteDance is presently fighting to circumvent the United States’ attempts to ban TikTok because of national security issues.

Listing ByteDance assets can offer a big boost for Hong Kong’s market, which has been oppressed by the US-China trade war and the churning pro-democracy protests that happened in 2019.

Hong Kong and Shanghai were set this week for the dual listing of Ant group’s digital transactions and finance provider, which would have been a world-record Initial Public Offering.

But it was taken out at the last minute between a mounting argument between Ant, whose controlling shareholder is Jack Ma, and regulators from China.

 

Image from ByteDance

 

Citing fears of general financial risks, Beijing has levied the latest limits on rapid-growing online lending and credit items, like those which are provided by Ant, in the run-up to the shared problem.

This was seen as possibly altering the business landscape for the Ant group, forcing the Initial Public Offering to be deferred for now.

The Trump government has asserted the need to ban TikTok, as the government believes that it has links to the Chinese government via ByteDance and that user information can be accessed by Beijing. TikTok has over 100 million users in the United States.

TikTok has recurrently rejected the claim. Its parent company, ByteDance has circumvented a ban in the States by setting up TikTok Global, which will run TikTok’s United States operations and be part-owned by Walmart and Oracle.