FAST FIVE: Nasdaq Tightens The Noose On IPOs Of Small Chinese Companies
Nasdaq Tightens The Noose On IPOs Of Small Chinese Companies If you spoke to any research desk on Wall Street earlier this year, most were saying the trade war would be resolved by the end of summer, and stocks would hit new highs because the economy was roaring.
The revision of listing rules has made “it more difficult in going public in the US,” said one person in charge of a Chinese financial technology company.
If they don't raise $200 million to meet the new threshold, their IPO would likely be delayed or perhaps rejected.
The restrictions have already delayed some IPOs that have to change their capital contribution plans to meet the new rules. IPO restrictions of Chinese firms looking to IPO on Nasdaq could shift these firms to other exchanges, like the New York Stock Exchange (NYSE).
This would likely lead an exodus of Chinese investors in the US, as they shift their listings elsewhere. Nasdaq's curbs on small to medium-sized Chinese firms is the latest flashpoint between souring relations of the US and China.