Chinese investors want in on US IPOs

Ordinary Chinese investors are turning to digital assets to skirt Beijing’s rules and bet on big US IPOs like SpaceX and OpenAI.

The workaround involves cryptocurrency that purportedly has exposure to the underlying stocks, the Financial Times reported, despite Beijing’s ban on converting cash into crypto.

There are concerns, though, that these securities aren’t all legitimate, showing how far the investors are willing to go to take advantage of the red-hot US market.

Chinese tech stocks have wavered this year amid scrutiny of steep AI spending and broader market volatility. Some Chinese AI startups have gone public, but their valuations pale in comparison to their American counterparts.