Manus acquisition plan put on hold, multiple Chinese AI companies assess dismantling red-chip structure to advance Hong Kong IPO

Odaily reported that after the acquisition plan of AI agent company Manus was put on hold, the China Securities Regulatory Commission (CSRC) has intensified its scrutiny of red-chip structured companies seeking Hong Kong IPOs. Several AI companies planning to go public have begun assessing the dismantling of their offshore structures and returning to domestic entities. Moonshot AI is communicating with lawyers regarding a structural reorganization but has yet to make a final decision. StepFun has initiated the process of dismantling its offshore holding structure, believing that transitioning to a domestic entity could help shorten the approval cycle. DeepRoute.ai is also conducting a similar assessment. Industry insiders point out that dismantling a red-chip structure typically takes 6 to 12 months, involving processes such as share buybacks, establishing joint venture entities, and tax treatment. Currently, regulators have not issued a comprehensive ban, but have already inquired about the offshore holdings of relevant companies. (The Information)