The offshore share offerings of three major Chinese bubble tea chains—Mixue Bingcheng, Guming Holdings, and Auntea Jenny—have been delayed by China’s Securities Regulatory Commission (CSRC) due to poor market conditions. These delays reflect cautious regulatory oversight as the companies face challenges from weaker consumer sentiment and increased competition.
Mixue Bingcheng, with 36,000 stores, planned to raise up to $1 billion in its Hong Kong IPO, while Guming, with 9,000 stores, aimed to raise $500 million. However, both IPO applications lapsed earlier this year due to slow approval processes. Auntea Jenny’s $300 million IPO plans have also been postponed.
The regulatory delay follows the underwhelming performance of Sichuan Baicha Baidao Industrial (Chabaidao), whose shares dropped nearly 27% on its debut in Hong Kong. This has raised concerns about the viability of the bubble tea sector amidst a slowing economy. Chinese companies have raised just $2.56 billion in Hong Kong IPOs this year, a sharp drop from $5.7 billion in 2022, as regulatory caution has limited offshore fundraising opportunities.