The number of Chinese companies listed on US equity markets have risen 14% in the past seven months despite Washington’s intensifying efforts to limit market access to businesses it deems a security threat, reported the South China Morning Post.
As of May 5, as many as 248 Chinese companies were listed on major US stock exchanges – Nasdaq, the New York Stock Exchange, and NYSE American – up from 217 on October 2, according to a report released on Thursday by the US-China Economic and Security Review Commission, a congressional advisory body. During that time, 17 Chinese companies were also delisted from US exchanges.
In the year ending in April, Chinese companies have raised a total of $17.55 billion in US initial public offerings, more than four times the $4.1 billion raised during the same period a year earlier, Dealogic data shows.
Matthew Kennedy, a senior IPO strategist at Renaissance Capital in New York, said that the activity showed the Chinese business view that “while Hong Kong will always be there, they may not always be able to list in the US. “So raise US dollars now while they can, face potential delisting sometime in the future.”