SpaceX IPO underwriters bar HK/China investors under US ITAR rules

SpaceX IPO underwriters have instructed syndicate banks to reject orders from investors in Hong Kong and mainland China, citing US defense export controls tied to ITAR (International Traffic in Arms Regulations). The directive was issued June 5 and applies to both institutional and private banking clients in the restricted regions. Goldman Sachs and Morgan Stanley lead the IPO syndicate’s marketing phase and said the exclusion is required for legal and regulatory compliance. The ban covers investment orders, and SpaceX IPO-related web assets and marketing materials are reported inaccessible in Hong Kong and mainland China ("Error 1009"). The IPO is expected to raise $75 billion, with a potential valuation of $1.75 trillion, and is anticipated to list on Nasdaq later this month under the ticker symbol SPCX. The move comes amid rising US–China tensions around technology exports. US senators have previously questioned whether Chinese investors hold undisclosed stakes in SpaceX and whether foreign capital in a defense-adjacent company could create national-security risks. For traders, the main market signal is geopolitical compliance risk entering a major capital-markets event. SpaceX IPO underwriters’ regional investor cutoff removes a large pool of Chinese capital, though the article says it does not appear to disrupt the IPO timeline or reduce demand from eligible investors.