Goldman reviews role in planned Megvii IPO after US blacklisting
Goldman Sachs is reviewing its role in the planned listing of a Chinese tech firm that has been blacklisted by the US.
The bank said today that it was looking at its involvement in Megvii Technology’s potential initial public offering (IPO).
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Megvii, known predominantly for its facial recognition algorithms, is one of 28 Chinese groups to be blacklisted for its alleged involvement in the repression of Muslim minorities.
Citigroup and JPMorgan are also sponsors of the IPO but both firms declined to comment today.
The US has put 20 Chinese government entities and eight companies on the so-called Entity List following their alleged involvement against ethnic Uighurs in China’s Xinjiang province.
“We are evaluating in light of the recent developments,” Goldman said in an emailed statement.
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Sources had previously told Reuters the listing was scheduled for Hong Kong during the fourth quarter and might raise as much as $1bn (£820m).
Megvii would be the first Chinese AI group to go public if it does list later this year.
The move to blacklist 28 Chinese groups has escalated tensions between the US and China, denting hopes of a trade war truce between the two sides in the coming days.