China's start-up investors look to other markets as regulatory scrutiny on U.S. IPOs builds

He noted that so far, Chinese securities law is "far less punitive" than it is in the U.S., and that recent securities regulation is "consistent with Chinese authorities' continuous efforts to improve the requirements and standards of listing."

Increased Chinese government scrutiny on local companies listing in the U.S. comes as tensions between the two countries are wearing away at economic and financial ties that have built up between over the last few decades. Consulting firm Eurasia Group said in a note over the weekend that fallout over Didi's listing will intensify U.S. political pressure for restrictions on Chinese stock offerings. "In short, the spigot of Chinese IPOs in the US will likely run dry," the authors said, pointing out that several Chinese firms have already canceled plans for IPOs in the U.S.

One strategy Chinese companies have pursued recently is listing in both the U.S. and Hong Kong — protecting against delisting risks while capturing a large pool of institutional investors.

More foreign investors found that the US stock market is a Casino for legal wealth robbery. Away from it when you had gain.

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