SpaceX bars Hong Kong, China investors from $75B IPO over arms rules

SpaceX, the aerospace and defense outfit founded by Elon Musk, has barred investors from Hong Kong and China from participating in its planned $75 billion initial public offering, expected to launch later this month, as underwriters enforce US rules on critical technology exports.

Banks overseeing the deal, including Goldman Sachs and Morgan Stanley, have instructed syndicate partners to block orders from those regions, citing compliance and regulatory risks tied to the International Traffic in Arms Regulations. Access to SpaceX's website from those locations was also blocked — a polite digital fence.

The decision comes amid an ongoing trend among US technology and AI companies to limit Chinese investment over national security concerns, particularly for firms in sensitive sectors or chasing government contracts.

The move marks a stark contrast to the previous decade, when Chinese investors were active participants in Silicon Valley via offshore structures.

Heightened US-China geopolitical tensions are pushing founders and banks to reduce or avoid Chinese ownership in pre-IPO cap tables.