The Nasdaq Stock Exchange intends to place new restrictions on IPOs, in a move that will make it more difficult for some Chinese companies to enter the stock exchange.

According to Reuters, informed sources said that while the Nasdaq did not specifically mention Chinese companies, the move stemmed largely from concerns about the lack of some Chinese companies that It aspires to offer its shares, to accounting transparency, as well as close relationships with influential people from within the companies.

While tensions are escalating between the United States and China over trade, technology, and the Coruna virus outbreak, Nasdaq’s restrictions on the IPO shares of small Chinese companies are the most recent point of contention in relations. Finance between the world's two largest economies.

The new rules require companies from some countries, including China, to collect $ 25 million from the initial offering or at least a quarter of the market value of post-listing, according to the new rules. Sources.

This is the first time that the Nasdaq has set a size for its initial launches. This condition would have prevented a number of Chinese companies, which are currently listed on NASDAQ.

Of the 155 Chinese companies listed on NASDAQ since 2000, 40 of them raised less than $ 25 million from the launch, according to Refinitiv's data.

The sources said that the proposed rules require that auditing companies ensure that their international customers adhere to international standards and that the Nasdaq examine the audit reports of the small American companies that undertake auditing of the Chinese companies that aspire. In an initial public offering.