Companies with headquarters in China or Hong Kong represent less than 10 per cent of listings on the U.S.-based Nasdaq.Brendan McDermid/Reuters
The world’s second-largest stock exchange is looking to tighten rules for small Chinese listings in the wake of a growing number of pump and dump scams, a move that may benefit Canadian consumers but could also lead fraudsters to focus on markets in this country.
The U.S.-based Nasdaq NASX proposed new rules on Wednesday requiring companies operating primarily in China to raise US$25-million in an initial public offering to go public on their stock exchange. The regulations are pending approval from the U.S. Securities and Exchange Commission.
They also proposed raising the minimum float – the shares of a company available for public trading – for future listings to US$15-million from US$5-million. Faster delistings for companies that no longer meet listing…
