Core Insights - The OTC Markets in the US have become a strategic platform for small and medium-sized enterprises (SMEs) seeking overseas capital, with a notable increase in market activity and transaction volume in 2025 [2][15]. Group 1: Overall Market Status - As of December 31, 2025, the total number of securities in the OTC market was 12,299, a decrease of 105 from 12,404 at the end of 2024, representing a decline of 0.85% [3]. - The total trading volume for the OTC market in 2025 reached approximately $646.21 billion, with a monthly average of $55.69 billion [5]. - The Asian region has become a significant contributor to the OTC market, with 4,293 companies and a trading volume of $44.5 billion as of Q3 2025 [4][11]. Group 2: Market Structure and Reforms - A major reform implemented on July 1, 2025, optimized the market structure from three tiers to four: OTCQX, OTCQB, OTCID, and Pink Limited, enhancing risk differentiation and transparency [5][15]. - The OTC market's tiered structure has led to a concentration of quality companies in higher tiers, with only 4 companies in the OTCQX tier, representing less than 0.5% of the total [14]. Group 3: Transition to Main Board Markets - In 2025, 35 companies successfully transitioned from the OTC market to the main board, a decrease of 27.1% from 48 companies in 2024 [6]. - The Nasdaq was the preferred destination for these transitions, with 23 companies (65.7%) moving there, reflecting a shift in preference compared to 2024 [6][8]. Group 4: Chinese Enterprises in the OTC Market - By the end of 2025, there were 848 Chinese companies listed on the OTC market, covering diverse sectors such as renewable energy, biomedicine, and internet services [11]. - The majority of Chinese companies are concentrated in the Pink Limited and expert markets, indicating a need for improved compliance and operational standards to access higher-tier markets [14]. Group 5: Future Outlook - The OTC market is expected to remain active in 2026, driven by policy reforms and an improving regulatory environment, with a continued focus on the "OTC cultivation, then main board transition" strategy for Chinese enterprises [15].