Wall Street is tightening its access to Chinese companies
After the Luckin Coffee scandal (removed from the Nasdaq after reporting more than US$310 million in false sales) and in a climate of tension between Washington and Beijing, the Senate voted unanimously at the end of May to pass a bill tightening the Stock Exchange listing rules for Chinese companies. The aim is to protect American investors with new strict laws for accounting transparency for new Chinese candidates. New entrants must raise more than US$25 million at their I.P.O. or at least 25% of market capitalisation after listing.