Nasdaq says IPOs by Chinese firms could pick up 'dramatically' as delisting fears ease

The Nasdaq is expecting much Chinese companies to database connected the U.S. speech successful the coming months arsenic Beijing and Washington look person to resolving an audit dispute.

"We inactive person a beauteous beardown pipeline … arsenic things are getting to go a small much wide successful that market. We deliberation that that marketplace could prime up beauteous dramatically," said Bob McCooey, vice president of Nasdaq, who does concern improvement successful the Asia-Pacific, told CNBC connected Wednesday.

The marketplace for Chinese archetypal nationalist offerings "pretty overmuch [shut] down" successful airy of the Holding Foreign Companies Accountable Act and the sound astir Chinese ride-hailing elephantine Didi Chuxing, helium told "Street Signs Asia."

Delisting hazard for U.S.-listed Chinese companies sharply accrued pursuing the signing of the Holding Foreign Companies Accountable Act successful precocious 2020.

The instrumentality allows the U.S. Securities and Exchange Commission to footwear Chinese companies disconnected American banal exchanges if American regulators are not capable to reappraisal institution audits for 3 years successful a row.

Chinese ride-hailing elephantine Didi's announcement of plans to delist from the New York Stock Exchange successful precocious 2021 — conscionable six months aft its U.S. IPO — besides fueled capitalist concerns. Didi was subjected to a cybersecurity probe from Chinese regulators soon aft its IPO. Didi besides faced an probe by the U.S. Securities and Exchange Commission.

Some 30 Chinese companies went nationalist connected the Nasdaq successful the archetypal fractional of 2021, McCooey said.

In contrast, lone 2 Chinese companies listed connected the Nasdaq successful the 2nd fractional of that year, and 1 Chinese institution debuted connected the speech from January to March this year, according to CNBC's investigation of information from the U.S.-China Economic and Security Review Commission.

But things are looking up.

"I tin accidental that it's northbound of 50 companies that would similar to travel nationalist connected Nasdaq successful the adjacent 12 months," McCooey said.

"We anticipation that everything goes smoothly and that successful the adjacent fewer months, we volition person clarity and certainty that companies from China volition proceed to stay listed," helium said. "That volition springiness assurance to different ones to travel to the U.S. superior markets."

Chinese companies listed connected the Nasdaq see electrical conveyance automaker Li Auto, e-commerce elephantine JD.com and tech institution Baidu.

— CNBC's Evelyn Cheng and Weizhen Tan contributed to this report.