Nasdaq wants Chinese companies to pay $25 million per U.S. IPO
Nasdaq markets are seen on April 7, 2025 during the morning trade in New York.
Michael M. Santiago | Getty Images
Beijing – The Nasdaq Stock Exchange in the United States plans to make it difficult for small Chinese companies to list the list in New York after small first public offers.
As part of the proposed changes, primarily companies operating in China You have to pay at least 25 million dollars Nasdaq said they were in local hours late on Wednesday.
The movement comes as a tension between the US and China, and Nasdaq faces wider financial market problems.
“It will be more difficult for small Chinese companies to go to public offering [on the] Nasdaq is under the new rule, “NYU Nyu Law Faculty Assistant Professor Winston Ma.” The new rule reacts to some public offering ‘pump and casting’ cases due to the size of the small buoy. “
Renaissance Capital, in December, in 2021, Ride-Hailing Company Didi’s new York list has been a few major Chinese public offering in the United States since the spread of the list. However, 35 small Chinese -based companies listed in New York in 2024 twice about 17 US -based microcap list.
Microcaps usually refer to stocks of market value of 50 million to 300 million dollars, so companies have only collected only a few million in the first public offering. A $ 25 million fee would delete most of the money collected in a small public offering.
He said that the change of rule was “positive”. “I think that for the legitimate reasons listed by companies, they will give more confidence and are less likely to be the game played with the stock, and it really protects companies.”
NASDAQ, Chinese lists for US investors of the United States “these securities potentially manipulative trade activities participating in individuals and individuals against individuals,” he said.
“In addition, the stock market also observed that Chinese companies that list Nasdaq in connection with a public offering with a bid size of less than 25 million dollars have higher compliance concerns.” He said.
The US Securities and the Stock Exchange Commission must officially approve Nasdaq’s proposal. Dışında Nasdaq said that companies in the public offering process will be 30 days to complete the process under previous rules, and that all the next lists should comply with changes.
Typically, the New York Stock Exchange, which only manages much larger public offers, did not immediately respond to the request for comments outside the US working hours. SEC and China’s securities regulation commission did not respond immediately.
Tensions in boiling?
Stephen Olson, a senior member of the ISEAS-Yusof Ishak Institute, said Nasdaq’s Listing Payment Payment Requirement “Business, trade and investment relations between the two countries are growing more complex and difficult to execute.”
In fact, the change of rules of the New York Stock Exchange, Beijing’s statement on Wednesday came. Slack new punishing tariffs to some US optical fiber manufacturersThursday comes into force.
“China says: We’re ready to fight fire,” Olson said. “Trade ceasefire is only a temporary band assistance. It can always collapse.”
The Chinese Ministry of Commerce referred to a six-month investigation that detects China’s anti-dumping taxes by selling a modified version of optical fiber of some US exporters.
New York -based optical fiber manufacturer Prophecy Now facing a 37.9% task in the exports of the product to China, offs Fitel 33.3% and Draka Communications American Americas 78.2%.
According to the company earning report, Corning for its general business as the largest source of income outside the United States as the largest source of income outside the United States, and in 2024 contributed to 32% of total sales revenue.
The Company and the US Trade Department did not respond immediately to the request for comments.
According to official customs figures, China has a deficit of $ 57 million with the US in the first seven months this year.
In the Economist Intelligence Unit, Senior Economist Tianchen Xu may have made this imbalance Beijing “technical excuse to take action”, stating that the elements imported from the US are more developed per goods and therefore are more expensive.
“Fire Change [between the U.S. and China] In many ways, Xu predicts that XU will be able to remove plans for a meeting between the two countries’ presidents.
The decision came a day after Washington was canceled Taiwan semiconductor production co’s The authority to refer to key chewing equipment and technology to the production facility in China is the final movement to remove Beijing’s semiconductor progress.
China’s optical fiber tariff has recently said “discontent” signals “to restrict Beijing’s access to advanced chips and restrict participation in submarine cable supply chain.
However, the tariff “is targeted and restricted to avoid shattering commercial negotiations for months. It also reminds that China’s leverage is beyond rare worlds.” He said.
The growth of the review for years
While China is trying to promote internal financial development, she wants to control capital outputs, including stock offers abroad. New policies in the last three years required Chinese companies, especially if their jobs have a large domestic user base, the securities regulator received their approval for overseas lists.
In the status, Nasdaq’s move has been taking a big step in regulatory examination in small Chinese public offering for the last few years.
The insurers of public offering with market value of less than $ 600 million saw the average commissions In 2020, triple from four years to 12%The Hong Kong securities stock exchange and local securities regulator said in a joint statement in May 2021.
Later in November 2022, the financial industry regulation authority in the United States warned investors “Public offering of some small cover exporters on the day of public offering or shortly after a short time.Most of them include exporters operating in other countries. “The notification was especially mentioned in China.
Finra added how foreign nationals opened accounts to invest in public offering to US broker vendors, and then made “manipulative orders and transactions to inflate after -sales prices”.
Peter Gonzalez from the Special Investigations Unit at a FINRA Podcast dated 12 November 2024, “Ramp and casting” schemes developed – Now weeks or months after the public offering, instead of just a few days.
Subscribe now
