Regulatory Tightening in China and the U.S. Leads to Nearly 90% Drop in Chinese Companies Listing in the U.S.

Wall Street Closes Its Door to China, British Media Reports Chinese Companies' Listing in the US Almost Stopped

From U.S. Congress investigations into underwriters, Nasdaq raising barriers, to securities regulators cracking down on stock manipulation, Wall Street's door for Chinese companies is gradually closing. Only two Chinese companies have completed initial public offerings (IPOs) in New York this year, a sharp decline from 19 during the same period last year.

The UK's Financial Times reported on Sunday that Chinese companies' listings in the U.S. have nearly come to a standstill. Only two Chinese companies have completed IPOs in New York so far this year, a significant drop from 19 during the same period last year, marking a sharp reversal after a record-breaking surge of 126 IPOs between 2024 and 2025.

According to an analysis of public records by the Financial Times, this sudden freeze stems from the simultaneous tightening of regulatory measures by both China and the U.S.

The U.S. Congress also took proactive steps last week. The House Select Committee on China sent letters to three small investment banks, requesting detailed information about their underwriting of Chinese companies' IPOs.

Facing the widespread rejection of Chinese companies, the U.S. Securities and Exchange Commission (SEC) has taken a more cautious stance. The director of the Division of Trading and Markets, Selva, clearly stated that it should not "stop all Chinese companies from entering the market because of one problem," saying, "Chinese companies are still welcome to enter the U.S. stock market, but those with toxic, small-market-value manipulative enterprises should be excluded."

The China Securities Regulatory Commission (CSRC) stated that the manipulation of Chinese stocks in the New York market falls under the responsibility of the U.S. regulatory authorities, which should be "severely dealt with according to law," and pointed out that it would assist the SEC in investigating relevant cases.

According to Deloitte data, the total fundraising for new listings of Chinese companies in the U.S. last year was approximately $1.12 billion, a significant drop from $1.91 billion in 2024; the average fundraising per IPO also fell from $32 million in the previous year to just $18 million. The last major case of a Chinese company listing in the U.S. was the $400 million fundraising of the tea chain Bawang Chaji in April last year.

As pressure from Washington on Chinese companies continues to intensify, the market is beginning to pay attention to Chinese tech giants such as Alibaba, Baidu, and JD.com, which are still listed in the U.S., whether they will eventually abandon their long-held Wall Street listing status and transition to purely Hong Kong-listed companies.

Source: rfi

Original article: toutiao.com/article/1860406418210826/

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