Too Many Small-Cap Chinese Offerings in US
Since last year, the China Securities Regulatory Commission (CSRC) has been preventing Chinese companies with small capitalization and weak fundamentals from listing in the U.S. after many became vehicles for price-rigging, causing heavy losses for investors, the Financial Times (FT) reports, adding that control is expected to be tighter this year.
The CSRC and market participants are worried about whether small-cap companies listed in the U.S. really need to raise capital, a person familiar with the CSRC's views told the FT.