Reported 10 months ago
As the Chinese economy and stock market continue to weaken, there has been an increasing trend of Chinese and Hong Kong companies applying for small initial public offerings (IPOs) in the US under relaxed overseas listing restrictions by Chinese regulatory authorities. However, the Nasdaq stock exchange is on high alert and is reportedly strengthening its scrutiny of these small IPOs from China and Hong Kong to avoid a repeat of the extreme volatility that occurred two years ago, affecting market investor interests. Despite escalating tensions between China and the US in recent years, Chinese companies continue to seek IPOs in the US, acknowledging China's significant market influence. With the previous closure of Hong Kong's small-cap Growth Enterprise Market (GEM), Nasdaq has become an appealing option for these small enterprises. Following past instances of extreme stock price fluctuations, Nasdaq has decided to enhance its scrutiny of Chinese and Hong Kong companies applying for listings, questioning aspects such as shareholders' backgrounds, relationships, and independence, adding uncertainty and increasing costs to the application process.
Source: YAHOO