Despite US-China Tensions, Number of Chinese Companies Seeking Wall Street Entry Doubles

19 Chinese Companies Listed in New York Since Early This Year
Double the Number Compared to the Same Period Last Year

[Asia Economy Reporter Park Sun-mi] Despite rising tensions between the U.S. and China this year, the number of Chinese companies listed on the New York Stock Exchange has doubled compared to the same period last year.

According to Dealogic data cited by major media on the 26th (local time), the number of Chinese companies listed on the New York Stock Exchange and NASDAQ since the beginning of the year has reached 19. This is twice the number of companies, which was 9 during the same period last year. Chinese companies listed on the New York Stock Exchange this year have raised a total of $2.9 billion, marking a 30% increase in funding compared to the same period last year.

China's largest P2P lending company, Lufax, is scheduled to list on the New York Stock Exchange within this year and plans to raise more than $3 billion, indicating that both the number and scale of Chinese companies heading to New York are expected to increase further.

The sustained enthusiasm of Chinese companies for listing on the New York Stock Exchange, despite the escalating tensions between the U.S. and China, is a noteworthy point. While some major Chinese corporations are opting for Hong Kong to avoid the increasing regulatory intensity in New York and seek regulatory relaxation, many companies still highly value the attractiveness of the New York Stock Exchange, which offers abundant investors and high stock trading volumes.

Experts say, "Chinese companies prioritize the appeal of the advanced U.S. capital market over political conflicts," adding, "One of the biggest advantages of the New York Stock Exchange is the active turnover of stock trading, which means it is easier for companies to issue additional shares after their initial public offering (IPO)." Jason Elder, a partner at Hong Kong law firm Mayer Brown, stated, "Even though the Hong Kong stock market has recently made strides with revised listing regulations, the U.S. market possesses very broad and deep liquidity."

Although the U.S., which has been in constant confrontation with China over issues such as the Hong Kong National Security Law, the spread of COVID-19, and human rights abuses in the Xinjiang Uygur Autonomous Region, recently passed measures to regulate Chinese companies' listings on U.S. stock markets, it may take time before these regulations are fully implemented. Among investment banks, there is talk that it could take more than three years for the listing risks perceived by Chinese companies in New York to materialize.

This content was produced with the assistance of AI translation services.