Chinese electric car manufacturer BYD has been forced to suspend the proposed listing of its computer chip-making unit amid a regulatory probe into the law firm advising the company.
BYD Semiconductor applied to list on Shenzen’s Nasdaq style market ChiNext in May and sought to raise at least $421m from the sale of shares.
The IPO application received approval in June, but the listing has been put on hold amid a regulatory investigation into Beijing Tian Yuan Law Firm, an advisor for BYD Semiconductor, according to an announcement made by the Shenzhen Stock Exchange on 18 August.
The Shenzhen Stock Exchange said the law firm was being investigated in relation to the listing by China Security Regulatory Commission but gave no further details.
Despite the suspension of its chip-making unit’s IPO, Hong Kong-listed BYD has seen shares up as much as five per cent on todAY.
BYD is China’s biggest manufacturer of microcontroller chips for vehicles. It becomes the latest target under Beijing’s regulatory crackdown against sectors ranging from technology to tutoring.
BYD Semiconductor competes with major chipmakers such as Germany’s Infineon and Rohm Semiconductor in Japan.