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Nasdaq to Reportedly Tighten IPO Rules for Chinese Firms, Crypto Potentially Affected

Published 05/19/2020, 08:14 AM
Updated 05/19/2020, 10:00 AM
Nasdaq to Reportedly Tighten IPO Rules for Chinese Firms, Crypto Potentially Affected

Nasdaq, the world’s second-largest stock exchange, is going to introduce new restrictions on initial public offerings, or IPOs, to prevent smaller Chinese companies from getting listed, a recent Reuters report citing anonymous sources suggests.

Chinese IPO seekers tend to lack accounting transparency and have “close ties to powerful insiders,” Reuters’ sources claim, which is why the new rules will reportedly set out a minimum value on the size of IPOs for the first time on Nasdaq.

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