Chinese companies including Moonshot AI weigh corporate restructuring following the reversal of the Meta-Manus deal

The immediate trigger for this regulatory tightening was Meta’s $2 billion acquisition of Manus—a China-founded AI agent company—after which relevant authorities ordered the deal’s reversal and launched a systematic review of the “domestically operated, offshore-registered” corporate model. Dismantling a red-chip structure is procedurally complex, typically taking six months to one year and involving multiple steps—including repurchasing offshore equity, establishing a joint venture, and having investors re-invest. Moreover, shares of such joint ventures listed in Hong Kong are subject to a 12-month lock-up period—twice as long as that for ordinary red-chip stocks. Analysts note that if red-chip structures face comprehensive restrictions, Chinese startups’ ability to raise U.S. dollar funding from overseas will be significantly weakened.