U.S. Nasdaq steps up scrutiny of Chinese company listings

Heightened screening comes amid concerns over market volatility

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Listings of small to midsize Chinese companies have increased volatility on U.S. stock markets in the past, leading to a push for stricter screening of initial public offerings. © Reuters

PAK YIU, Nikkei staff writer

NEW YORK -- The Nasdaq Stock Market has increased its scrutiny of small to midsize Chinese companies looking to list on the bourse, causing uncertainty and delays, according to people familiar with the matter.

Several investment bankers, lawyers and professional services companies have told Nikkei Asia the tech-focused Nasdaq has questioned the identity and background of investors before the companies' planned initial public offerings, a move that has extended the listing process by weeks or months.

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