Xpeng vice chairman: have a strong interest in US market but not easy for Chinese companies to enter, waiting for right window

Xpeng vice chairman: have a strong interest in US market but not easy for Chinese companies to enter, waiting for right window

Title: Nasdaq's New Listing Requirements: A Barrier for Small Chinese Companies

Nasdaq has proposed a new rule that will make it more difficult for small Chinese companies to list on the exchange. The requirement stipulates that companies operating primarily in China must raise at least $25 million in their initial public offerings (IPOs) to qualify for listing on the Nasdaq. This change comes amidst growing tensions between the U.S. and China, as well as broader financial market issues.

The new rule is seen as a response to the "pump and dump" schemes that have been prevalent with small Chinese IPOs. Winston Ma, an adjunct professor at NYU School of Law, noted that the rule will make it harder for small Chinese companies to go public on the Nasdaq [1]. Gary Dvorchak, managing director at Blueshirt Group, expressed that the rule change is a positive step, instilling more confidence in the legitimacy of the companies and protecting both investors and the companies themselves [1].

Nasdaq cited compliance concerns and the inability to take legal action against entities involved in potentially manipulative trading activities as reasons for the new requirement. The exchange also observed that Chinese companies listing with an offering size below $25 million had a higher rate of compliance issues [1].

The proposed rule change follows a recent announcement by Beijing that it would impose new punitive tariffs on some U.S. optical fiber producers. This move is seen as a response to the U.S. restricting access to advanced chips and participation in the undersea cable supply chain [2]. The Nasdaq's listing requirement is another example of the growing complexity in conducting business between the U.S. and China [1].

Xpeng, a prominent Chinese automaker, has expressed interest in the U.S. market but acknowledges that it is not easy for Chinese companies to enter the market. The vice chairman of Xpeng has indicated that the company is waiting for the right window to enter the U.S. market [3].

The U.S. Securities and Exchange Commission (SEC) needs to formally approve Nasdaq's proposal. Companies already in the IPO process will have 30 days to complete under prior rules, while all subsequent listings will have to comply with the changes [1].

The New York Stock Exchange (NYSE) has noted that it has always maintained a high standard for listing requirements and is happy to see others raising their own bar [1].

References:
[1] https://www.cnbc.com/2025/09/04/nasdaq-wants-chinese-companies-to-pay-25-million-per-us-ipo.html
[2] https://www.reuters.com/business/autos-transportation/chinese-battery-maker-catl-expects-hungarian-production-start-by-early-2026-2025-09-07/