Chinese Investors Blocked from SpaceX IPO Over Security Concerns

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Underwriters for SpaceX’s $75 billion initial public offering have been instructed to reject orders from investors in Hong Kong and China due to US restrictions on critical technology exports. The lead banks managing the deal have informed other banks in the underwriting syndicate not to accept orders from customers in Hong Kong and China, including private banking clients, citing regulatory and compliance risks. The decision is based on internal guidance related to the US International Traffic in Arms Regulations, which control exports of defense-related technologies and technical data. Goldman Sachs Group Inc. and Morgan Stanley, the primary banks leading the…

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