China’s red-chip structure – long used by internet companies to attract foreign capital while navigating domestic restrictions – is facing renewed scrutiny as regulators tighten oversight of offshore listings.The shift is already reshaping the pipeline for Hong Kong initial public offerings (IPOs), with companies increasingly being encouraged to unwind these structures or justify why they remain necessary.This explainer outlines the reasons behind the policy shift, what it means for tech IPOs, and what it takes to unwind the structure.What is a red-chip structure?The term “red chip” dates back to the 1980s, when Chinese state-backed firms used offshore entities to control…