Nasdaq Proposes Accelerated Delisting for Companies Valued Below $5 Million, Drawing Opposition from U.S. Domestic Firms

Odaily reports: Nasdaq plans to introduce new rules under which listed companies whose market capitalization falls below $5 million for 30 consecutive days would face immediate suspension and delisting proceedings, aimed at cracking down on manipulation tactics such as "pump-and-dump" schemes in the overseas small-cap stock market. The proposal has drawn opposition from small U.S. domestic businesses, with affected companies concerned that the new rules could inadvertently target normally operating companies with significant stock price volatility, impacting their fundraising and business development. The U.S. Securities and Exchange Commission (SEC) suspended progress on the proposal last month and decided to seek further public comment. Currently, more than 190 Nasdaq-listed companies have a market capitalization of no more than $5 million, nearly half of which are headquartered in the United States. (Bloomberg)