A small number of China-based businesses are looking to become the first to list in the US since July, testing the willingness of regulators in both countries after simultaneous regulatory crackdowns, reports the Financial Times. Six China and Hong Kong-based groups filed new or updated documents with the US Securities and Exchange Commission for an initial public offering on the Nasdaq exchange in January.
They were followed last week by Meihua International Medical Technologies, a producer of disposable medical devices, which set a target offering price after submitting its initial filing almost six months ago. Although each deal is expected to be small in size, lawyers, exchange officials and China experts will be watching them closely for signs that there is still a future for the once-thriving market for Chinese listings.
“They’re certainly not Alibaba, but nonetheless . . . the optics of it would send a broader message,” said Arthur Dong, a professor at Georgetown University’s McDonough School of Business and a specialist in Sino-US business relations. “If these pass, it would show there are still visible signs of life and it’s not a completely dead market for Chinese companies to list.”