(Wall Street Journal) - The Nasdaq Stock Market has quietly halted listings of small-cap Chinese companies, holding up approval letters and demanding more information about related parties in deals, after a series of meteoric run-ups—and dramatic collapses—in IPOs this year.
Shares of more than 20 recently listed companies have risen over 100% on their first day of trading.
They include Hong Kong-based fintech company AMTD Digital Inc., HKD -0.07%▼ which briefly jumped over 320-fold after its July listing, and Chinese garment maker Addentax Group Corp., ATXG -2.11%▼ which rose more than 130-fold on its market debut in August. The two stocks have since lost more than 98% of their value.
The exchange has privately informed lawyers over the past few weeks that new listings of small-cap companies were being subjected to additional reviews, and approvals were suspended until further notice.
By Michelle Chan
