Core Viewpoint - The new Nasdaq listing rules implemented on January 17, 2026, significantly raise the financial thresholds for IPOs, prompting more Chinese companies to consider the U.S. OTC market as a key platform for cross-border capital deployment [1] Group 1: Nasdaq New Rules - The net income standard has increased from $5 million to $15 million, a 200% increase [6] - The revenue standard has risen from $8 million to $15 million, an 87.5% increase [6] - A minimum fundraising threshold of $25 million has been set for companies primarily operating in China, prohibiting them from listing directly on Nasdaq [6] - The review authority has been upgraded, allowing exchanges to reject listing applications even if companies meet written financial standards if they are deemed to have potential risks of securities manipulation [6] Group 2: OTC Market Developments - In January 2026, only one Chinese company successfully listed on the OTCQX Best Market, highlighting the challenges faced by Chinese firms in the U.S. capital market [1] - Over 800 Chinese companies have already established a presence in the U.S. OTC market by the end of 2025, covering various sectors such as new energy, biomedicine, intelligent manufacturing, and new materials [1] - The OTC market is becoming a preferred choice for Chinese companies due to its flexible processes, moderate thresholds, and suitable regulatory environment [4] Group 3: Company Listings - Boray Pharmaceutical Co., Ltd. successfully listed on the OTCQX on January 7, 2026, becoming the first issuer from Taiwan to do so, leveraging its main board listing in Taiwan to simplify the U.S. market approval process [2] - Yichang Keli Sheng Group utilized a shell company acquisition to list on the OTC, demonstrating a model for small and medium enterprises to enter the U.S. market [3] - The shell company acquisition model significantly shortens the listing cycle and avoids the lengthy review process associated with traditional IPOs, providing a platform for small enterprises with core technologies [3] Group 4: Pathways for Chinese Companies - Direct application for listing on OTCQX is one pathway for companies with established business and compliance systems, laying the groundwork for future transitions to the main board [8] - The shell company acquisition and asset injection method allows for quick and cost-effective listings, suitable for small enterprises seeking cross-border financing [8] - The current mainstream strategy for Chinese companies involves initial fundraising in the OTC market, followed by compliance upgrades and eventual transition to Nasdaq or NYSE [8]