Nasdaq expects more Chinese companies to list on US exchanges in the coming months as Beijing and Washington appear to be moving closer to resolving the audit dispute.
Bob McCooey, Nasdaq vice president of business development in the Asia-Pacific, told CNBC on Wednesday.
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China’s IPO market is “pretty much [shut] down” in the light of The Foreign Companies Accountability Act and The buzz around Chinese ride-hailing giant Didi Chuxinghe said “Street Signs Asia. “
Listing risks for Chinese companies listed in the US increased sharply after the Foreign Companies Accountability Act was signed in late 2020.
The law allows the US Securities and Exchange Commission to remove Chinese companies from US stock exchanges if US regulators are unable to review company audits in three years. consecutive.
Chinese ride-hailing giant DidiThe announcement of plans to delist from the New York Stock Exchange by the end of 2021 – just six months after the US IPO – also raised concerns among investors. Didi was subject to a cybersecurity investigation from Chinese regulators shortly after its IPO. Didi also faces investigation by the US Securities and Exchange Commission.
McCooey said about 30 Chinese companies listed on Nasdaq in the first half of 2021.
In contrast, only two Chinese companies listed on Nasdaq in the second half of that year, and one Chinese company debuted on the exchange between January and March of this year, according to CNBC analysis of US-China Economic and Security Review Commission data.
But things are looking up.
“I would say it’s the north of the 50 companies that want to list on Nasdaq in the next 12 months,” McCooey said.
“We hope that everything goes smoothly and in the next few months we will have clarity and certainty that companies from China will continue to be listed,” he said. “That will give confidence to others coming to the US capital markets.”
– Evelyn Cheng and Weizhen Tan of CNBC contributed to this report.