17 Nov 2021
NYSE Sees Potential for More Chinese Listings Once Rules are Agreed
The Index Today
The New York Stock Exchange sees growing potential for more Chinese listings once both governments agree on regulatory scrutiny rules.
NYSE President Stacey Cunningham said during a Bloomberg New Economy Forum that a balance must be created to protect investors and create access to opportunities in new companies. She further said, “There’s still appetite for Chinese companies to list in the U.S. There’s still appetite to invest in those companies. The question is, can we get through some of the particulars around those disclosers so that those opportunities can be met by both sides.”
The current stalemate is over China’s ban on overseas regulators and allowing them to see books. The U.S has suggested delisting of Chinese companies on the stock exchange who refuse to accept an audit under the law. The New York Stock Exchange stated it will delist military-tied Chinese companies whereas the U.S Securities and Exchange Commission has pressed for increased transparency in order to be listed on the exchange.
This year alone, $119 billion was raised by companies through IPOs on the NYSE, far more than Hong Kong’s $37 billion. However, the NYSE still falls far behind Nasdaq’s $187 billion. Due to increased Chinese scrutiny over cycbersecurity laws, many companies are shifting focus towards Hong Kong. Stacey Cunningham said, “You’re seeing some companies deciding to push off their timelines based on investor conversations and investor demand. So while we are seeing a little bit of a slowdown, were continuing to see a very strong pipeline into the next year.”