Hesai Raises $190 Million in Biggest Chinese U.S. IPO Since 2021

Car technology firm's share sale comes as US-China trade increases

Stock prices on a screen

Getty Images

Key Takeaways

  • Hesai Group raised $190 million in its IPO, the largest U.S. listing by a Chinese company since 2021.
  • Didi Global amassed $4.4 billion in a 2021 IPO, but the stock crashed shortly after amid data security probes.
  • Chinese companies have been hesitant to sell public shares in the U.S. amid high inflation, strict COVID policies, and turmoil surrounding Didi's delisting in 2022.
  • Trade between China and the U.S. has increased, though, despite ongoing political tension.

Hesai Group (HSAI), the self-driving car technology company, raised $190 million in a U.S. initial public offering (IPO), the largest by a Chinese company since 2021, in a sign that economic ties between the two nations are on the mend even amid simmering political tension.

In its Nasdaq debut, Hesai sold 10 million American depositary receipts (ADRs) for $19 each. The last time a Chinese company had a larger IPO was ride-sharing service Didi Global Inc. in 2021. Didi raised over $4 billion before a data security scandal tanked its stock days later, eventually leading to probes by U.S. and Chinese authorities, and the stock being delisted in the U.S. in May 2022.

Last year was slow for U.S. IPOs generally and Chinese companies in particular, as the Asian nation's strict COVID policies, high inflation, and hesitation after the Didi crash diminished incentives to list. Both China and the U.S. instituted rules regarding data security and other concerns for Chinese companies hoping to trade on American exchanges.

Trade Increases, Tensions Linger

The environment for Chinese IPOs is slowly improving. China eased its pandemic restrictions at the end of last year, and Nasdaq Vice Chairman Bob McCooey has said there's a strong pipeline of Chinese companies seeking to list on the exchange in the coming months.

At the same time, U.S.-China trade is increasing to levels not seen since before the pandemic. The U.S. imported about $537 billion in Chinese goods in 2022, 6.3% more than in 2021 and just shy of the record set in 2018. U.S. exports to China also climbed in 2022, though at a slower rate.

Trade is strengthening while political turmoil between the two nations remains high after former President Donald Trump imposed sweeping tariffs on Chinese goods. President Biden's administration has kept many of those tariffs in place. The Chinese surveillance balloon that the U.S. spotted and destroyed last week has fed further tension.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Financial Times. "Chinese tech group’s Nasdaq IPO signals revival for offshore listings."

  2. Reuters. "Majority shareholders vote in favor of delisting Didi from New York."

  3. Bloomberg. "Didi Global Says It Faces SEC Probe Related to U.S. IPO."

  4. Nasdaq. "Chinese IPOs Ready for a Roaring 2023."

  5. U.S. Census Bureau. "Trade in Goods with China."

  6. Wall Street Journal. "U.S.-China Trade Grows as Spy Balloon Raises Tensions."

Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.