Nasdaq to crack down on IPOs of small Chinese companies

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Nasdaq to crack down on IPOs of small Chinese companies

Nasdaq Inc., the US-based multinational financial services corporation operating the tech-heavy Nasdaq stock market alongside eight other European stock Exchanges, majority owned by a Swedish wealthy Wallenberg family, had been exploring an option to crack down small Chinese companies’ Initial Public Offerings (IPO) by smearing harsher regulatory restrictions and slowing down their approvals, regulatory filings, corporate executives alongside investment bankers familiar with the situation had unveiled on Sunday, the 29th of September.

In point of fact, latest backlash on smaller Chinese firms’ listing on US stock exchanges came forth following reveal of a media report later this week that US President Donald Trump alongside his Administration had been mulling an option to bar access of Chinese companies into the US stock exchanges in a bid to curb out US investments on Chinese firms, remarking a latest escalation of a nearly fifteen-month-long Sino-US trade abrasion ahead of a high-stake new round of trade talk scheduled to take place as early as next month.

Although a Nasdaq Inc. had declined to comment over the critical issue that would likely to ratchet up trade tensions further, a Nasdaq spokeswoman said on Sunday (September 29th) followed by the media report to squeeze out Nasdaq IPO opportunities for the smaller Chinese firms, “One critical quality of our capital markets is that we provide non-discriminatory and fair access to all eligible companies.

The statutory obligation of all U.S. equity exchanges to do so creates a vibrant market that provides diverse investment opportunities for U.S. investors. ”