Nasdaq Boosts Scrutiny of Investors in IPOs From China, HK

• Firms grilled on identity, independence of selling holders
• China relaxed overseas listing rules, sparking more deals

 

Nasdaq Inc. is once again increasing scrutiny of small initial public offerings from China and Hong Kong to avoid a repeat of the wild swings that followed a handful of deals two years ago, according to people familiar with the matter.

Several Hong Kong- and China-based IPO applicants have faced a series of questions from Nasdaq, the people said, asking not to be identified discussing private information. Questions centered on the identity and independence of the firms’ pre-IPO investors selling shares in the listings, the people said.

https://www.bloomberg.com/news/articles/2024-06-20/nasdaq-adds-scrutiny-of-investors-in-ipos-from-china-hk