Nasdaq wants Chinese companies to pay $25 million per U.S. IPO

## Nasdaq Tightens the Reins on Chinese IPOs Amidst US-China Tensions

The Nasdaq is implementing stricter rules for Chinese companies seeking to list in New York, reflecting growing tensions between the US and China and concerns over market manipulation. Here’s a breakdown:

• New Financial Hurdle: Chinese companies will now need to raise at least $25 million in their initial public offering (IPO) to list on the Nasdaq.
• Targeting Microcaps: This change primarily impacts smaller Chinese companies, often referred to as microcaps, which typically raise only a few million in their IPOs.
• Combating “Pump and Dump”: The move is seen as a response to potential “pump and dump” schemes, where stock prices are artificially inflated before being sold off.
• Increased Scrutiny: The Nasdaq cited concerns about the US’s limited ability to take legal action against manipulative trading activities involving Chinese companies.
• Broader Context: This comes amidst a backdrop of strained US-China relations, including recent trade disputes and restrictions on technology exports.
• China’s Response: China has retaliated with tariffs on US optical fiber producers, signaling its willingness to respond to US trade actions.
• Impact on Companies: Companies like Corning, which relies heavily on the Chinese market, could be significantly affected.
• Regulatory History: This move follows years of growing regulatory scrutiny on small Chinese IPOs, including warnings from FINRA about manipulative trading practices.

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