Chinese IPOs face clamp as Nasdaq tightens rulesBusiness | Reuters and Avery Chen 20 May 2020
Nasdaq is set to unveil new restrictions on initial public offerings, a move that will make it harder for some Chinese companies to debut on its stock exchange.
While Nasdaq will not cite Chinese companies specifically in the changes, the move is being driven largely by concerns about some Chinese IPO hopefuls' lack of accounting transparency and close ties to powerful insiders, the sources said.
Nasdaq has delivered a notice to China's Luckin Coffee informing it that it has to delist from the US stock exchange, people familiar with the matter said.
Chinese education company GSX Techedu, listed in the New York Stock Exchange, was attacked by American short-seller Muddy Waters yesterday, questioning its user numbers and revenue.
Meanwhile, China is urging domestic companies to look at listings in London, as the country aims to revive deals under a stock connect scheme and strengthen overseas ties.