Following the halt of Manus's acquisition plan, several Chinese AI companies are assessing the need to dismantle their red-chip structure in order to proceed with their Hong Kong IPOs.

TechFlow to a report by The Information on May 2nd, following the halt of Manus's acquisition plans, the China Securities Regulatory Commission (CSRC) has tightened its review of Hong Kong IPOs by companies with red-chip structures. Several AI companies planning to list have begun assessing the need to dismantle their overseas structures and return to domestic entities. Moonlight's Dark Side is currently communicating with lawyers regarding restructuring and has not yet made a final decision; Leap Star has initiated the dismantling of its overseas holding structure, believing that switching to a domestic entity will 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 procedures such as share buybacks, establishing joint ventures, and tax processing. Currently, regulators have not issued a comprehensive ban, but have inquired about the overseas holding situations of relevant companies.