China’s Moonshot AI moves to unwind offshore structure in IPO pursuit: sources

Moonshot AI, the Chinese AI unicorn behind the popular Kimi chatbot, has informed shareholders that it intends to dismantle its offshore structure to pave the way for an initial public offering, likely in Hong Kong, according to people familiar with the matter.The Beijing-based start-up, with assets held by a Cayman Islands parent company, has proposed a plan to remove its variable interest entity (VIE) structure. The company sought feedback from investors this week, the two sources said, speaking on condition of anonymity.The move is the latest example of how Beijing has toughened its stance on the decades-old arrangement that has allowed foreign investors to gain exposure to Chinese companies. While no formal rule change has been enacted, the China-securities-regulatory-commission" class="entity-link entity-organization" data-entity-id="21605" data-entity-type="organization">China Securities Regulatory Commission (CSRC) has increased its scrutiny of offshore entities, often requiring start-ups to justify the necessity of the VIE model.