Nasdaq wants Chinese companies to pay $25 million per U.S. IPO

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BEIJING — The Nasdaq stock exchange in the U.S. is planning to make it harder for small Chinese companies to list in New York, after a flood of tiny initial public offerings.

As part of proposed changes, companies operating primarily in China will need to pay at least $25 million from their public offering, Nasdaq said late Wednesday local time.

The move comes as tensions between the U.S. and China simmer, and as the Nasdaq faces broader financial market issues.

“It will be more difficult for small Chinese companies to go IPO [on the] Nasdaq under the new rule,” said Winston Ma, adjunct professor at NYU School of Law. “The new rule reacts to some IPO cases of ‘pump and dump’ due to small float size.”