On September 3 local time, the Nasdaq exchange announced proposed changes to its listing standards. The proposed rules have now been submitted to the U.S. Securities and Exchange Commission (SEC) for review.

Revised Rule Content:

1. The minimum market value of public float for new companies listing under the profit-based standard has been raised from $5 million to $15 million.

2. Companies with listing deficiencies and a securities market value below $5 million will face accelerated suspension and delisting procedures.

3. New listing companies primarily operating in China are required to raise a minimum of $25 million in their initial public offering (IPO).

Challenges and Impacts of the New Rules:

According to filings with the China Securities Regulatory Commission (CSRC), as of August 2025, a total of 48 companies are still under review for U.S. listings (excluding confidential submissions). If Nasdaq’s new rules are approved and implemented, small and medium-sized enterprises (SMEs) preparing to list in the U.S. will face higher listing thresholds, particularly affecting small-scale IPOs.

The new rules may lead to a significant year-on-year decline in the number of Chinese companies listing on Nasdaq in the second half of 2025. Many small enterprises could be excluded by the new regulations, shifting investor focus toward leading companies. SMEs may need to reconsider their listing strategies.

However, in the long term, Nasdaq’s new rules will help filter higher-quality and more competitive companies for U.S. listings, thereby improving the overall quality of listed companies in the capital market and promoting its healthy and steady development. The new regulations are expected to reduce market volatility, enhance genuine market liquidity, strengthen investor protection, mitigate investment risks associated with excessive market fluctuations, and safeguard investor interests. This will create a safer and more reliable trading environment for high-quality enterprises.

Despite Nasdaq’s vast trading volume and liquidity, which provide broader financing channels and greater brand exposure—making it the preferred listing destination for many companies—SMEs now face significant challenges under the new rules. In this context, SPAC reverse mergers, with advantages such as a faster process, guaranteed financing, and flexible valuations, present a more suitable listing path for small and medium-sized enterprises.