Chinese and Hong Kong-based investors have been excluded from SpaceX’s historic initial public offering (IPO) due to U.S. national security regulations governing sensitive aerospace technology.
At the centre of the restriction are export control laws, particularly the International Traffic in Arms Regulations (ITAR), which limit access to companies involved in defence-related and advanced space systems.
This means because SpaceX designs and operates rockets, satellites, and launch infrastructure with potential military applications, it falls under strict compliance rules.
Under these regulations, underwriters managing the IPO are required to screen and restrict participation from investors in jurisdictions considered sensitive or high-risk for technology transfer concerns.
Read also: SpaceX IPO: Six things every investor needs to know before SPCX starts trading
China is included in that category due to ongoing U.S.–China tensions over advanced technology, space capabilities, and dual-use systems.
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