Small Chinese companies looking to go public may have a harder time getting listed on Nasdaq, according to a report in Reuters.
Nasdaq could not be immediately reached for comment on Sunday evening to confirm the report, which Reuters based on regulatory filings, executives and investment bankers.
Many small Chinese firms are increasingly raising most of their IPO funding from Chinese investors and after going public staying "in the hands of a few insiders," according to the report that cites the IPOs of 111 Inc. (YI) - Get 111 Inc. Sponsored ADR Class A Report and Ruhnn Holding (RUHN) - Get Ruhnn Holding Ltd. Sponsored ADR Class A Report as examples.
A Nasdaq spokeswoman, while declining to comment specifically on the matter to Reuters, told the news service that "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."
The report comes days after news that the Trump Administration was supposedly mulling "delisting" Chinese companies from U.S. stock exchanges and then reporting in Bloomberg over the weekend in which a U.S. Treasury official said there were no plans to block Chinese companies from U.S. listings.
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