(Reuters] – On Thursday, a company that was backed by China’s Hony Capital with a buyout plan, pulled out of plans for IPO in the United States. It is now the latest entity to reverse its course due to rising volatility.

Hony Capital, China’s most prominent private equity company, had planned to raise $300 million through the sales of warrants or shares at $10 per unit.

Many so-called Special Purpose Acquisition Companies (or SPACs), have stopped plans to list their shares at U.S. Exchanges within the past week. This was due to volatile markets which investors think are unfit for stock flotations.

SPACs, which are shell companies that have been listed on the stock exchanges with the intent of merging with a private entity at a later time in order to make it public without the need for an IPO, raise funds via a public offering.

SPACs were able to raise unprecedented capital levels and record volumes last year thanks to such mergers.

However, only a few companies have listed in the United States this year due to wild swings in asset prices across the globe, fueled by the Ukraine War and the expectation of an aggressive monetary policy in order to reduce inflation.