According to media reports, six companies headquartered in Chinese mainland or Hong Kong filed documents with the U.S. Securities and Exchange Commission (SEC) in January this year to apply for an initial public offering (IPO) on the NASDAQ. To put it simply, these companies applied to be listed in the United States. The report pointed out that although the scale of each transaction is expected to be relatively small, the outside world, especially professionals in related fields, are paying close attention to the possibility of Chinese companies going public in the United States in the future. Arthur Dong, an American professor, believes that this phenomenon shows that Chinese-funded companies have gone public in the United States and have "signs of life recovery".
As we all know, China has been the largest source of listings for companies outside the United States for the past decade. The role played by the mainland in this regard is similar to that of tourism and education, and the main source of income for nasdaq and the New York Stock Exchange in the United States is from here. However, from 2020 onwards, tensions between China and the United States have intensified, and this change has affected exchanges and cooperation between China and the United States in various fields, the most obvious of which is economic and trade exchanges. At present, many Chinese companies have been blacklisted by the United States, and many Chinese products have been subject to tariffs.
The listing of Chinese companies in the United States is no longer as smooth and easy as before. In February and December 2020, the two houses of the U.S. Congress passed bills aimed at imposing additional disclosure requirements for foreign companies to list in the United States. The bill went into effect in January this year, and although the United States is using all foreign companies as a cover, it is actually deliberately targeting Chinese companies, which is beyond doubt. So far, many Chinese companies have been stuck in the SEC listing application.
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