U.S. Nasdaq Steps up Scrutiny of Chinese Company Listings

John Owen recently spoke to Nikkei Asia, and was quoted in an article, “U.S. Nasdaq steps up scrutiny of Chinese company listings”. The reporter noted that the Nasdaq Stock Market has increased its scrutiny of small to midsize Chinese companies looking to list, which has caused uncertainty and delays with potential listings.

John, comment on this trend: “They've been asking in some deals for China issuers, for additional diligence around things like [the identities of the] selling stockholder. And again, I think that has been unique. But it's because of, you know, a particular set of deals where the price behaved kind of unusually after pricing."

He also noted that some Chinese companies might be looking expedite a listing, in advance of the next U.S. Presidential election. John, commented: “Many Chinese companies are looking to get listed before the [U.S. presidential] election, because who knows how regulations could change with a new president.”

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