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TikTok parent ByteDance is reportedly planning a Hong Kong IPO despite the ongoing crackdown from Beijing

Matthew Fox   

TikTok parent ByteDance is reportedly planning a Hong Kong IPO despite the ongoing crackdown from Beijing
Stock Market1 min read
  • TikTok parent ByteDance is planning a Hong Kong IPO for late 2021 or early 2022, according to a Financial Times report.
  • The plans come even as a regulatory crackdown from Beijing impacts a number of industries.
  • ByteDance has been working to resolve data security concerns in recent months, the report said.
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An ongoing regulatory crackdown from Beijing isn't stopping TikTok parent ByteDance from planning its IPO, according to a Financial Times report.

The social media company is targeting a Hong Kong IPO in either the fourth quarter of 2021 or early 2022, the report said.

ByteDance had reportedly scrapped its IPO plans last month after it met with Chinese regulators who were concerned with data security issues. At the time, the company was planning to go public in either the US or Hong Kong.

ByteDance decided to do the opposite of what ride-hailing giant Didi did, which pressed ahead with its US IPO despite warnings from Chinese authorities. Since Didi went public, it's been hampered by regulatory actions from China, resulting in a stock price decline of nearly 50% at lows.

ByteDance has been working with authorities in recent months to satisfy issues with data security, according to the report, clearing the way for a potential IPO with likely less scrutiny from regulatory authorities than Didi.

Didi isn't the only Chinese stock to be decimated by regulatory actions from Beijing in recent months. Chinese education stocks have plunged as the company restricts tutoring sessions for kids on holidays and weekends, while Chinese technology companies have been the subject of anti-trust regulations and fines.

In late March, ByteDance traded at a valuation of more than $250 billion in the private markets. Given the record rally in stocks since then, the company could likely fetch a much higher valuation if it goes public.

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