Nasdaq plans will make it harder for small Chinese firms to list

BEIJING – The NASDAC Stock Exchange in the United States in the United States is planning to make it difficult for small Chinese companies to be included in New York, after a flood of small public offers.

As part of the proposed changes, companies operating in China will be primarily You need to raise at least $ 25 million In preliminary public offers to be included on the stock exchange, Nasdak said late on Wednesday local time.

The move comes at a time when tensions ripen between the United States and China, and as Nasdak face issues in the wider financial market.

“It will be difficult for small Chinese companies to go public subscription [on the] “The new rule interacts with some cases of” pump and discharge “because of the small size.”

There have been a few large Chinese subscriptions in the United States since Didi’s company hailing repercussions Renaissance Capital stated in December that the New York list is based in 2021. But in 2024, 35 small companies based in New York, which is nearly twice the US -based MicroCAP.

Microcaps usually indicate shares ranging from $ 50 million and $ 300 million, which means that companies raised only a few million in the first public offering.

Gary Davurchak, Managing Director of the Blueshirt Group group, said the base change is “positive”. “I think it would instill more confidence in the fact that companies are listed by doing so for legitimate reasons, and there are more likely to have games that are played with stocks and they protect companies as well.”

Nasdak indicated that the Chinese lists are a greater risk of American investors because the United States is unable to take legal measures “against entities and individuals participating in potential trading activities in these securities.”

Nasdak said: “Moreover, the stock exchange noted that the Chinese companies that are included in the Nasdaak Stock Exchange regarding the public subscription with a lower offer size

The US Securities and Stock Exchange Committee needs to be officially approved by Nasdak’s proposal. Nasdak said that the companies already in the public subscription process will have 30 days to complete the process under the previous rules.

The New York Stock Exchange, which usually dealt with much larger public subscriptions, did not respond immediately to request a comment outside the American working hours. The Securities Organization Committee at SEC and the China Committee did not respond immediately.

In fact, the change of the exchange ruling in New York came in the wake of the Beijing announcement late on Wednesday that it will A new punitive tariff slap over some American optical fibers producersOn the actual Thursday.

“China says: We are ready to fight fire with fire,” said Olson. “The commercial truce is just temporary assistance. It can collapse at any time.”

The Chinese Ministry of Commerce indicated an investigation for a period of six months and found that some American exporters have ridiculed the anti -beating fees in China by selling a modified version of optical fibers.

The advanced optical fiber product in New York Corning It is now facing a duty of 37.9 % on product exports to China, OFS Fitel 33.3 % and Draka Communications America 78.2 %.

For its total work, Corning calculated China as the largest revenue outside the United States, contributing 32 % of the total sales revenue in 2024, according to the company’s profit report.

The company and the US Department of Commerce did not immediately respond to a request for comment.

China suffers from a deficit of $ 57 million in optical fiber trade with the United States in the first seven months of this year, according to official customs figures.

“The elements imported by China from the United States are largely more sophisticated, and therefore more expensive for each element.”

“Exchange of fire [between the U.S. and China] Shaw predicts, “He will continue in many ways,” which may hinder plans to hold a meeting between the presidents of the two countries.

The decision came a day after Washington’s cancellation Taiwan Manufacturing Company, semiconductors A mandate for charging the main chips equipment and technology for its manufacturing factory in China, The last step to reduce the progress of semiconductor Beijing.

Alfredo Montfafe Hilo, Managing Director of Greenpoint Consulting Company, said that the visual fiber tariff “signs” on the recent US moves to restrict Beijing’s access to advanced chips and participation in the surface -to -sea supply chain.

But the customs tariff “also targets and registered enough to avoid the months of destruction of commercial negotiations. It is also a reminder that China’s influence extends beyond the rare land.”

Insurance companies witnessed subscriptions, which are less than $ 600 million Three times over four years to 12 % in 2020The Hong Kong Stock Exchange and the local stock organizer said in a joint statement in May 2021.

Then in November 2022, the organizational authority in the financial industry in the United States warned investors “on”A significant increase in the unusual prices in a day or shortly after the subscriptions for some young exportersMost of them include exporters with operations in other countries. “The notice is mentioned in particular.

Finra added that she “has concerns” about how foreign citizens opened accounts in the United States for brokers to invest in subscription subscriptions, and then put “tampering and trading orders to amplify post -sales prices.”

At Podcast Vinkra on November 12, 2024, Peter Gonzalez of the Special Investigation Unit said The “slope and discharge” plans have evolved It occurs now weeks or months after the public subscription, instead of only a few days.

Correction: This story has been updated to reflect that Nasdak plans to request Chinese companies to collect at least $ 25 million in the initial public offers to be included in the stock exchange.