Anticipated Increase in Chinese IPOs on Nasdaq Despite Hurdles in Regulatory Approval Process

The US IPO market is witnessing a resurgence of interest from Chinese and Asian companies, despite ongoing regulatory hurdles and security concerns. This shift is evident in the recent dialogues between Nasdaq and the China Securities Regulatory Commission (CSRC), as reported by Nikkei Asia.

Last year, 24 Chinese companies listed on US exchanges, raising a total of USD 656 million. This year, 12 Chinese companies have already debuted, raising at least USD 483 million, according to current data. The CSRC has given approval to 43 companies to list in the US this year, with more expected to follow.

China's new rules, effective from March 2023, mandate that companies listing in the US and Hong Kong must obtain approval from the CSRC and departments overseeing cross-border data security. This regulation has undoubtedly slowed down the pace of listings in the US, as admitted by Robert McCooey, vice chairman of Nasdaq.

However, McCooey remains optimistic about the return of China listings. He predicts that there will be more and higher quality listings from Asia this year than in the past three years. McCooey is particularly excited about a recent uptick in South Korean listings, including the upcoming debut of online comics platform Webtoon Entertainment.

The US IPO market is still recovering from a sluggish period following a boom in 2021, with only 54 companies listing last year, according to data from University of Florida professor Jay Ritter. Despite this, Chinese EV maker Zeekr made a strong debut last month on the New York Stock Exchange (NYSE), marking the biggest IPO for a Chinese company in the US since 2021.

Not all Chinese companies have had smooth sailing, however. A specific Chinese lidar company, Hesai, was put on a Defense Department list of companies with Chinese military ties. Additionally, Chinese fast fashion giant Shein has IPO plans, but lawmakers have urged the SEC to stop the company from going public until it can prove its supply chains are free from Uyghur forced labor.

Republican senator Rick Scott wrote a letter to Nasdaq expressing concerns over allowing companies that create a national security risk to trade on its exchange. This concern was echoed by some lawmakers who are urging the SEC to scrutinise Shein's IPO plans more closely.

Despite these challenges, McCooey expects more Japanese companies, such as pachinko hall operator Libera Gaming Operations, to list on the Nasdaq this year. Leading tech companies from Southeast Asia, such as Singapore's Grab and Vietnam's VinFast, have been major contributors to Asian IPOs on the Nasdaq composite.

One of the most significant listings this year was Eastern International, which scheduled its IPO for August 28, 2025, on the Nasdaq Capital Market. Macau-based Zenta Group began trading on the Nasdaq Capital Market on September 9, 2025.

This article was first published on Nikkei Asia and is republished here as part of 36Kr's partnership with Nikkei.

Anticipated Increase in Chinese IPOs on Nasdaq Despite Hurdles in Regulatory Approval Process