---
title: Coming Home – Overview of Going Private Transactions of U.S.-Listed Chinese Companies
description: Coming Home – Overview of Going Private Transactions of U.S.-Listed Chinese Companies
---

[Member News | CGCCUSA ](https://www.cgccusa.org/en/news)

# [Coming Home – Overview of Going Private Transactions of U.S.-Listed Chinese Companies](https://www.cgccusa.org/en/news/coming-home-overview-of-going-private-transactions-of-u-s-listed-chinese-companies)

 Written by [CGCC](https://www.cgccusa.org/en/news/author/cgcc) | September 2, 2020

**Source: **[Morrison Foerster](https://www.mofo.com/resources/insights/200825-private-transactions.html)  
**Article Authors**: Ruomu Li, Marcia Ellis, Alice Li, Elba Ding  
**Published:** August 2020

Since the early 1990s, the U.S. stock exchanges have long been  
 home to many prominent Chinese companies as they tried to attract a wide  
 spectrum of investors and enhance their global profile. However, waves of the  
 reverse trend – of those U.S.-listed Chinese companies going private with the  
 ultimate goal of relisting in China – have come and gone in the past 10 years,  
 with this year representing the most recent and perhaps ultimate wave as  
 Chinese companies abandon what they see as a very unwelcoming U.S. market.

While the traditional reasons that public companies choose to  
 delist are still relevant for U.S.-listed Chinese companies’ decision to go  
 private (such as reduced compliance costs and burdens, better focus on the  
 company’s long-term development goals, and more control over the company’s  
 shareholder base), growing political and trade tensions between China and the  
 United States, heightened regulatory scrutiny of U.S.‑listed Chinese companies  
 by U.S. regulators, and potential high trading multiples upon relisting in  
 China appear to be the key drivers for the recent wave.

These going private transactions can present attractive  
 investment opportunities for PE houses as the controlling  
 shareholders/management of many U.S.-listed Chinese companies with great  
 prospects and solid fundamentals feel pressure to take their companies out of  
 the U.S. market and require partners with cash and corporate finance expertise  
 to do so.

In this article, we will elaborate on the following topics:

1. [**A Typical Going Private Transaction**](https://www.mofo.com/resources/insights/200825-private-transactions.html#typical): What is a typical going private transaction of a U.S.-listed  
 Chinese company?

2. [**Key Players and Their Roles**](https://www.mofo.com/resources/insights/200825-private-transactions.html#players): What are the key players' roles, objectives, and strategic  
 considerations?

3. [**Key Procedural Steps and Indicative Timeline**](https://www.mofo.com/resources/insights/200825-private-transactions.html#procedural): What is the approximate timetable setting forth the key  
 procedural steps from submission of a going private proposal?

4. [**Key Strategic Considerations**](https://www.mofo.com/resources/insights/200825-private-transactions.html#strategic): Such asBuyer Consortium, Special Committee, Deal  
 Certainty, Schedule 13E-3 and the SEC Review

5. [**Conclusion**](https://www.mofo.com/resources/insights/200825-private-transactions.html#conclusion): What to look ahead for?

[**CLICK  
 HERE**](https://www.mofo.com/resources/insights/200825-private-transactions.html) to continue reading the full  
 article

For any  
 questions regarding this article, kindly contact Jiang Liu ([JiangLiu@mofo.com](mailto:%20JiangLiu@mofo.com))

[View full post](https://www.cgccusa.org/en/news/coming-home-overview-of-going-private-transactions-of-u-s-listed-chinese-companies)

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