Nasdaq(US:NDAQ) Zheng Quan Shi Bao·2025-09-27 09:25Core Viewpoint - Nasdaq is proposing new regulations that will significantly increase the listing requirements for companies, particularly affecting small enterprises from China seeking to go public in the U.S. market [1][2][3]. Group 1: Proposed Listing Requirements - The new regulations will raise the minimum public float market value for IPOs to at least $8 million for the global market and $5 million for the capital market, with a unified increase to $15 million if companies list based on net profit [2]. - Chinese companies will be required to raise at least $25 million through public offerings during their IPOs, with similar requirements for companies using SPACs or transferring from other exchanges [2][3]. Group 2: Impact on Chinese Companies - In the current year, 59 companies have gone public on Nasdaq, raising a total of $1.02 billion, with an average fundraising of $17.3 million; only three companies raised over $25 million [3]. - The proposed regulations are expected to have a significant impact on the ability of Chinese companies to list on Nasdaq, particularly smaller firms that may struggle to meet the new thresholds [3][4]. Group 3: Increased Delisting Pressure - The new rules will introduce additional conditions that could lead to immediate delisting or trading suspension if companies fail to meet ongoing listing requirements, such as maintaining a market value of at least $5 million for ten consecutive trading days [4]. - Previously, companies were often given a grace period to comply with listing standards, but the new regulations may eliminate this buffer, making it more challenging for companies to maintain their listings [4][5]. Group 4: Strategic Considerations for Companies - Companies planning to go public in the U.S. should prepare in advance, assessing their current stage and considering alternative markets such as the New York Stock Exchange or Hong Kong, which may have less stringent requirements [5][6]. - Firms are advised to engage with cornerstone investors and develop financing plans to meet the new minimum fundraising requirements, while existing listed companies should focus on core operations and maintain compliance with listing standards [6][5].