Nasdaq Proposes Stricter Listing Rules for Chinese Firms, Thinly Traded Stocks

Nasdaq has proposed stricter listing standards aimed at enhancing investor protection and market integrity, including raising the minimum public float to $15 million for new listings and requiring companies primarily operating in China to raise at least $25 million through public offerings. The exchange also plans a faster suspension and delisting process for companies with listing deficiencies and a market value of listed securities below $5 million. These changes reflect Nasdaq's response to evolving market dynamics, including a surge in Chinese companies seeking U.S. listings amid complex regulatory and geopolitical challenges. Nasdaq's executive vice president, John Zecca, emphasized the goal of improving liquidity and safeguarding markets against potential trading abuses such as pump-and-dump schemes. The proposed rules are currently under review by the U.S. Securities and Exchange Commission and, if approved, will be implemented promptly, with companies already in the listing process given a 30-day period to comply with existing standards. Overall, the revisions signal a broader industry effort alongside regulators to tighten oversight of small company securities and maintain fair, orderly markets.