Nasdaq to tighten listing rules, particularly for companies from China
Nasdaq has submitted the proposed rules to the SEC and plans to implement them immediately once they are approved
Exchange operator Nasdaq proposed on Wednesday stricter listing standards, including a higher minimum public float for certain new listings and a faster process to suspend and delist thinly traded companies.
Nasdaq said in a statement that it would require companies primarily operating in China to raise a minimum of US$25 million in public offering proceeds to qualify for listing, reviving a threshold it previously applied to issuers from “restrictive markets”.
The New York-headquartered exchange operator said it submitted the proposed rules to the US Securities and Exchange Commission (SEC) for review, and if approved, plans to implement the changes promptly.
Wall Street’s top regulator in June singled out China as it sought to raise disclosure requirements for listing hopefuls.
The proposed changes come as a record number of Chinese companies are seeking to list in the US this year, driven by onerous domestic rules and the prospect of better valuations despite volatile US-China relations and regulatory scrutiny.