China is going to win this one, because US VCs want to "exit". Big Chinese companies are quite happy to keep ownership as the company becomes operational and profitable. They want revenue, not valuation.
In theory, if they let companies IPO when they wanted, supply and demand shows that the price of stock generally goes down. So all the capital that would have gone into other things in the market, like let's say undervalued tech companies, instead goes toward buying a handful of tickers which have inflated value because there's nothing else people can invest in.
Now as for valuations, PE and VC firms in China get a lot of money from the Chinese government which doesn't exactly need to see a huge return on investment since they're more focused on deploying capital in industries which the government identify as important (like AI). And so firms will invest at greater multiples and with larger amounts of money.
Huh? Neither of them did. They stayed and built up their companies.
Er, no.