22:20 - 5.06.2026

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June 5, Fineko/abc.az. Brokerages participating in SpaceX’s 75 billion dollar Initial Public Offering (IPO) have reportedly been ordered to ban investors from mainland China and Hong Kong from participating in the deal.

ABC.AZ reports that according to sources familiar with the matter, the restriction is driven by stringent US curbs on the export of critical technologies.

Regulatory Risks and Defense Regulations:

• Notification to Banks: Lead underwriters overseeing the transaction have informed other consortium members that due to regulatory and compliance risks, they must not accept orders from clients based in Hong Kong and China, including private banking customers.

• ITAR Compliance: Sources noted that the decision stems from internal guidelines aligned with the US International Traffic in Arms Regulations (ITAR), which strictly govern the export of defense-related technologies and technical data.

The lead banks on the deal, Goldman Sachs Group and Morgan Stanley, along with SpaceX, have so far declined to comment.

Impact of Geopolitical Tensions: In recent years, US technology and artificial intelligence firms have grown increasingly cautious about accepting capital from Chinese investors. Companies pursuing government contracts or operating in sensitive sectors routinely attempt to keep their shareholder base clear of investors who could trigger scrutiny from US authorities. As geopolitical tensions between Washington and Beijing intensify, western brokerages are becoming more selective in capital allocation, with some firms actively reducing or entirely eliminated Chinese ownership stakes.