Nasdaq cracks down on IPOs of small Chinese companies

Nasdaq cracks down on IPOs of small Chinese companies

REUTERS/Shannon Stapleton

Nasdaq Inc is cracking down on initial public offerings (IPOs) of small Chinese companies by tightening restrictions and slowing down their approval, according to regulatory filings, corporate executives and investment bankers.

Nasdaq’s attempt to limit these stock market flotations comes as a growing number of them end up raising most of the capital in their IPO from Chinese sources, rather than from U.S. investors.

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