10 hours ago
- Business
- Wall Street Journal
Chill in U.S.-China Relations Hits Stock Listings
Wall Street's welcome mat for Chinese stock listings long transcended rocky U.S.-China relations. Increasingly, the stock market relationship is succumbing to distrust between the world's two largest economies.
More than 80 Chinese companies have delisted their shares from U.S. exchanges since 2019, according to data provider Wind.
Around 275 China-based companies now represent less than 2% of the capitalization of shares traded on the New York Stock Exchange and Nasdaq.
The NYSE hasn't hosted a new listing from China since carmaker Zeekr went public in May 2024.
Chinese initial public offerings still pour in—in fact, 2024 saw the highest number in years—but most are tiny, highly speculative stocks, not the megabillion-dollar 'red chips' of yesteryear. The 62 Chinese offerings last year raised an average of under $7 million. Some struggle to maintain the minimum 300 public shareholders, a red flag for investors that they could be risky or outright scams.
