Nasdaq MarketSite in New York City.File Photo:VCG

US stock exchange Nasdaq announced on Wednesday proposed changes to its listing standards, including a $25 million minimum public offering proceeds requirement for new listing of the companies principally operating in China, along with two other new requirements. 

Industry analysts said that Nasdaq's new rules explicitly singles out companies operating in China, raising concerns over potential discrimination, which could create risks for Chinese companies seeking US listings and undermine confidence in the fairness of US stock market.

The proposed new listing changes targeting companies principally operating in China follow the stock exchange's rules proposed in May 2020 and approved in October 2021, which required that companies from the so-called "restrictive" markets have a minimum public offering size of $25 million, or 25 percent of the value of their securities.

"The proposed changes could be seen as specifically targeted or discriminatory, potentially restricting Chinese companies, especially tech firms, from listing in the US market," He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Thursday.

He added that as a tech-focused exchange, Nasdaq's setting higher threshold would limit financing opportunities for China's small and medium-sized tech companies, which may slow their technological growth and would reduce potential competition with US firms.

What is particularly concerning is that Nasdaq's rule changes would give it greater rigidity, He noted. "Unlike administrative directives, such rule changes are more technical. If imbued with 'political overtones,' they pose potential risks for Chinese companies seeking to list on Nasdaq," He said.

Nasdaq has submitted the proposed new rules to the US Securities and Exchange Commission, and if they are approved, the SEC will promptly implement them. Companies already in the listing process will have 30 days to follow the old standards and thereafter all new listings will have to meet the new rules.

The move comes as the US has in recent years stepped up restrictions against Chinese companies, including in the financial and technology fields. 

Gao Lingyun, a research fellow at the Institute of World Economics and Politics uunder the Chinese Academy of Social Sciences, told the Global Times on Thursday that Nasdaq's unilateral move to tighten listing standards is "irresponsible."

According to statistics from Wind, a Chinese financial information provider, 61 Chinese companies raised $3.02 billion through IPOs in the US in 2024, the Securities Times reported earlier. 

In the first half of 2025, most Chinese companies going public in the US were small and medium-sized firms. A total of 40 companies listed their shares there so far this year, raising about $900 million, down 61.12 percent year-on-year, according to another report by the Securities Times.

Yan Bojin, an official from the China Securities Regulatory Commission (CSRC), said during a press conference on May 22 that the CSRC reaffirmed its commitment to opening up the capital market at a high level, and actively supporting Chinese tech companies in leveraging both domestic and overseas markets and resources, noting that while promoting the development of tech firms, the commission also places a strong emphasis on the proper regulation of the funds raised through public listings. 

"Working with members of its cross-departmental coordination mechanism, the CSRC will continue to support eligible tech companies in developing in a compliant manner at both the domestic and international capital markets, while providing a more transparent, efficient, and predictable regulatory environment for overseas listings," said Yan.