A Nasdaq display in Times Square in New York after the Chinese online group discounter Pinduoduo Inc. was listed on the exchange in 2018. Large companies such as Pinduoduo have had more success in US stock markets than smaller companies that are proving less popular. Photo: Reuters

Nasdaq cracks down on IPOs of small Chinese companies that trade thinly and are controlled by a few insiders

  • A growing number of these flotations end up raising most of the capital in their IPO from Chinese sources, rather than from US investors
  • Their low liquidity makes them unattractive to many large institutional investors, to whom Nasdaq is seeking to cater
Topic |   IPO

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A Nasdaq display in Times Square in New York after the Chinese online group discounter Pinduoduo Inc. was listed on the exchange in 2018. Large companies such as Pinduoduo have had more success in US stock markets than smaller companies that are proving less popular. Photo: Reuters
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