Nasdaq Cracks Down on IPOs of Small Chinese Companies

Nasdaq Cracks Down on IPOs of Small Chinese Companies
People walk past the NASDAQ MarketSite in New York's Times Square, U.S. on June 4, 2012. Eric Thayer/Reuters
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Nasdaq Inc. is cracking down on initial public offerings (IPOs) of small Chinese companies by tightening restrictions and slowing their approval, according to regulatory filings, corporate executives, and investment bankers.

Nasdaq’s attempt to limit these stock market flotations comes as a growing number end up raising most of the capital in their IPO from Chinese sources, rather than from U.S. investors.