Artificial Intelligence: Chinese AI Company And IPO-Hopeful SenseTime To Land Up On US Blacklist
The US action will unfortunately time with the day the AI giant prices its Hong Kong IPO.
In protest against human rights abuses against Muslim Uyghurs in Xinjiang, the US is likely to place SenseTime, the Chinese AI company, on an investment blacklist, the Financial Times reported Thursday.
Washington will take the action against SenseTime on Friday, on the occasion of Human Rights Day, and alongside similar steps against a host of other countries, sources familiar with the matter told the FT.
SenseTime had planned to sell 1.5 billion shares within a price range of HK$3.85 to HK$3.99 each in the IPO. It was scheduled to set the final price and allocate shares to institutional investors on Friday.
SenseTime on investment blacklist
The US Treasury will include SenseTime on a list of “Chinese military-industrial complex companies” that are prohibited for investment by Americans following an executive order signed by President Joe Biden in June.
As a result, US-based investors would be unable to participate in the company’s IPO.
The US and other nations including the UK, Australia, and Canada are concerned regarding the repression of more than one million Uyghurs and other ethnic minorities who have been subjected to detention and forced labour in camps in the China’s Xinjiang region.
Reuters reported today that SenseTime and its advisors held urgent talks with the Hong Kong stock exchange late on Thursday and early on Friday on how the ban would impact the IPO, which was to begin trading on December 17.
On Wednesday, the US House of Representatives passed a bill to ban the import of goods from Xinjiang unless it was proved that they were not manufactured by forced labour.
Related Story: AI and Human Rights at Crossroads; MIT Dumps iFlytek
Latest Alternative Investment News
Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…
An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…
VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…
Chinese AI company Parametrix.ai has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…