Chinese Electric Car Maker Suspends Plan To Sell Share In Its Computer Chip Making Unit

BYD, a Chinese electric car has withheld its plan to sell shares in its computer chip making unit sighting Beijing’s crackdown on businesses.

The suspension is said to come amid a broader regulatory tightening on industry by Chinese authorities which involves a regulatory investigation into the law firm advising the company.

Over the weekend, the Shenzen Stock Exchange said Beijing Tian Yuan Law Firm, one of China’s biggest legal services companies, was being investigated in relation to the listing.

It said the firm, which has been an advisor for BYD Semiconductor’s planned initial public offering (IPO), was being investigated by China’s Security Regulatory Commission but gave no further details.

BYD Semiconductor had aimed to raise at least $421m ($309m) from the sale of shares.

It planned to invest the money back into the business as global carmakers struggle with a shortage of computer chips.

The firm is China’s biggest maker of microcontroller chips for vehicles.

BYD is the latest Chinese company to have its plans up-ended as Beijing tightens regulations on everything from technology giants to insurance providers.

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