Chinese carmaker BYD's chip unit IPO plan halted by regulatory woes

BYD, China's biggest carmaker by market valuation, is looking to list its chipmaking arm in Shenzhen. © Getty Images

Chinese electric car maker BYD‘s plan to list its semiconductor arm has been suspended due to a regulatory probe into the law firm advising the company on the deal, in the latest sign of Chinese authorities tightening their scrutiny of local tech companies and capital markets.

BYD Semiconductor, China’s biggest maker of automotive microcontroller chips, filed an application in May to list on Shenzhen’s ChiNext, a Nasdaq-style market supervised by Shenzhen Stock Exchange. The company aimed to raise at least 2.68 billion yuan ($412 million) for automotive chip development, according to its prospectus. The stock exchange accepted the IPO application for review in June.

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