Chinas Zhihu starts Hong Kong dual primary listing

div classBodysc17zpet90 cdBBJodivpBy Scott Murdochp

pHONG KONG Reuters – Chinese questionandanswer website Zhihu Inc opened its bookbuilding process on Monday to raise 133 million in a dual primary listing in Hong Kong, according to its regulatory filings and a term sheet seen by Reuters.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe deal comes amid a regulatory standoff between Washington and Beijing over access to Chinese company audits, a dispute that is casting doubt on the fuure of those companies listed in the United States.p

pZhihu, which listed in New York in March last year, is selling 26 million existing shares in the Hong Kong deal, which will be finalised on Thursday, the filings showed.p

pFour major shareholders, led by investors Capital Today and Innovation Works, are selling some of their stakes in Zhihu, according to the term sheet.p

pZhihu did not immediately respond to a request for comment from Reuters.p

pWith Zhihus service, users publicly post questions to which others offer replies.p

pAn increasing number of Chinese firms listed in the U.S are considering secondary or dual primary listings in Hong Kong in case U.S. delistings are ordered, sources have previously told Reuters.p

pWashington is demanding complete access to the books of U.Slisted Chinese companies, but Beijing has previously barred foreign inspection of working papers from local accounting firms.p

pThe China Securities Regulatory Commission said earlier this month it would revise the confidentiality rules involving offshore listings, which could remove a legal hurdle to the companyaudit standoff.p

pThe proposal centres on scrapping requirements that onsite inspection of overseaslisted Chinese companies be conducted mainly by Chinese regulators.p

pThe move could allow inspections by U.S. regulators who demand complete access to such firms audit working papers, which are stored in China.p

pZhihus New York listed shares have fallen 53.8 so far in 2022.p

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pp Reporting by Scott Murdoch in Hong Kong editing by Bradley Perrettp

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