Nasdaq Tightens Listing Rules Amid Surge of Chinese IPOs

Nasdaq has announced a series of proposed changes to its listing standards, which include raising the minimum public float for new listings, alongside a swifter process to delist companies with insufficient trading activity. The proposed rules are now under review by the U.S. Securities and Exchange Commission.

The updated requirements mandate that companies primarily operating in China must raise at least $25 million through public offerings to qualify for listing. These adjustments come amid a surge in interest from Chinese firms hoping to list in the United States, seeking better valuations despite complex international relations and regulatory hurdles.

Nasdaq's initiative indicates a shift towards stricter regulation in response to evolving market dynamics, aiming to enhance investor protection and liquidity. The exchange is also enhancing its collaboration with regulatory bodies to address potential trading irregularities.