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Chinese startups in a limbo as IPO freeze spurs reimbursement requests

Chinese startups in a limbo as IPO freeze spurs reimbursement requests

People walk by office towers in the Lujiazui financial district of Shanghai, China October 17, 2022. REUTERS/Aly Song/File Photo

Chinese startups are increasingly struggling with demands from early-stage venture capitalists to return their investment or face lawsuits, after failing to provide an exit via a market listing within an agreed time frame, industry executives said.

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