Can Companies Registered in China Go Public in the U.S.? Exploring the Path of Chinese Enterprises' Internationalization

Can Companies Registered in China Go Public in the U.S.? Exploring the Internationalization Path for Chinese Enterprises

In the context of global economic integration, an increasing number of Chinese companies aim to access broader capital markets through international financing and brand enhancement. As one of the world’s largest capital markets, the United States naturally becomes a top choice for many enterprises. Can companies registered in China go public in the U.S.? The answer is yes. However, the process is not straightforward and requires strong overall capabilities, compliance readiness, and a long-term strategic vision.

1. Feasibility of Chinese Companies Going Public in the U.S.

The U.S. securities market, represented by NASDAQ and the New York Stock Exchange NYSE, features a mature regulatory system and a diversified investor base. According to the U.S. Securities and Exchange Commission SEC, any company worldwide, regardless of origin, can list in the U.S., provided it meets requirements related to information disclosure, financial auditing, and corporate governance. Therefore, companies registered in China are fully eligible to apply for an initial public offering IPO in the U.S.

However, going public in the U.S. involves more than just submitting documents. Companies must meet SEC requirements, including preparing financial reports in accordance with U.S. Generally Accepted Accounting Principles GAAP, engaging U.S.-approved auditing firms, and passing rigorous compliance reviews. Additionally, they must consider investor preferences in the U.S. market, industry-specific regulatory environments, and geopolitical uncertainties.

2. Recent Trends Revival of Chinese IPOs in the U.S.

Since the second half of 2025, with positive progress in Sino-U.S. audit regulatory cooperation, the pace of Chinese companies listing in the U.S. has accelerated. According to Bloomberg, more than 10 Chinese companies completed IPOs in the U.S. in the first quarter of 2025, raising over $1.5 billion collectively. This indicates a recovery of market confidence in Chinese enterprises.

For example, in March 2025, GreenPower Technology, a Shenzhen-based new energy company, successfully listed on NASDAQ at an IPO price of $12 per share, with its stock surging over 30% on the first trading day. The company stated that its decision to list in the U.S. was not only for fundraising but also to enhance its global brand influence and attract strategic partners worldwide.

In April 2025, another example was AI medical startup SmartImaging Healthcare, which also listed on NASDAQ. Its CEO noted in an interview that the U.S. capital market is more inclusive toward technology-driven enterprises, and the company hopes to accelerate RD and global expansion through the IPO.

These cases demonstrate that despite the complex dynamics in Sino-U.S. relations, companies with core competitiveness and sound governance can still gain recognition in the U.S. capital market.

3. Main Paths to U.S. Listing

For companies registered in China, the main routes to U.S. listing include

1. Direct IPO

The company applies directly to list on a U.S. stock exchange under its own name. This route demands high financial health, governance standards, and transparency, making it suitable for large, profitable enterprises.

2. Reverse Merger RM

The company merges with a publicly traded shell company in the U.S. to achieve indirect listing. This method is faster and less costly, but carries higher compliance risks and is less commonly used by mainstream companies today.

3. American Depositary Receipts ADRs

The company issues shares overseas, and a U.S. bank issues corresponding depositary receipts for trading in the U.S. market. This avoids direct U.S. registration but still requires compliance with SEC regulations.

4. Red Chip Structure Offshore Listing

Some companies set up holding companies abroad, such as in the Cayman Islands, transfer domestic assets to the offshore entity, and then list in the U.S. This model is common, especially in tech and internet sectors.

4. Challenges and Responses

Despite the openness of the U.S. capital market, Chinese companies still face several challenges when listing in the U.S.

Regulatory Compliance Pressure The SEC imposes strict disclosure requirements, requiring comprehensive adjustments in finance, legal, and tax areas.

Audit and Data Security Issues Although the Sino-U.S. audit working paper issue has eased, companies still need to manage cross-border data flows carefully.

Investor Relations Complexity U.S. investors have different priorities, so companies need to strengthen communication with international investors.

Currency and Market Volatility Risks Fluctuations in the U.S. dollar and U.S. stock markets may affect enterprise valuations.

To address these challenges, companies should plan strategically in advance, engage professional intermediaries such as international investment banks, law firms, and accounting firms, and establish a robust compliance management system.

5. Choosing the Right Internationalization Path

Besides the U.S., Chinese companies can also consider listing in Hong Kong, Singapore, London, and other markets. For instance, in 2025, the Singapore Exchange introduced a green channel to encourage Chinese tech companies to list there by streamlining approval processes. The Hong Kong market, with its mature mechanism, has also become a preferred choice for many enterprises.

However, the U.S. capital market remains one of the most liquid and influential globally. For companies with an international vision, technological advantages, and growth potential, listing in the U.S. remains a key option to enhance brand value and expand financing channels.

Conclusion

Companies registered in China can not only go public in the U.S., but in today’s globalized environment, doing so has become an important path for Chinese enterprises to internationalize. Whether through a direct IPO or a red chip structure, as long as companies prepare thoroughly for compliance, strengthen governance, and choose the right listing strategy based on their industry characteristics, they can demonstrate their strength and potential on the global capital stage.