Challenges Behind the Success Chinese Companies Going Public in the U.S.

In recent years, Chinese companies listing in the U.S. have once again become a focal point in the capital market. From early internet pioneers like Sina and Sohu, to later giants such as Alibaba and Pinduoduo, and most recently new energy vehicle manufacturers and biotech firms, Chinese enterprises have consistently maintained a presence in the U.S. capital market.

Despite institutional differences and regulatory frictions between China and the U.S., American stock markets remain a crucial platform for overseas fundraising by Chinese companies. According to data from Bloomberg at the end of 2025, more than 30 Chinese companies had completed IPOs on Nasdaq or the New York Stock Exchange that year, raising over $8 billion in total. Among them were many emerging companies in the fields of technology, healthcare, and green energy.

This trend not only reflects progress made by Chinese firms in technological innovation and global expansion, but also highlights the openness and inclusiveness of the U.S. capital market. The surge in U.S. listings among Chinese companies is primarily driven by the mature mechanisms of the American capital market. The U.S. securities market features a well-developed market maker system, strict disclosure rules, and an efficient trading system, offering a more transparent and efficient financing environment for companies. Meanwhile, the participation of a large number of international investors makes it easier for companies to gain recognition from global capital. For growth-oriented firms, especially those requiring substantial financial support in their RD stages, the high liquidity of the U.S. market serves as a vital source of funding.

Listing in the U.S. also has a positive impact on enhancing a company's international brand influence. A successful U.S. IPO is often seen as a symbol of a company’s strength and operational maturity. This helps attract overseas clients and partners, and contributes to building brand credibility in international markets. For example, a Chinese AI company that listed on Nasdaq in 2025 not only attracted significant international investment, but also established strategic partnerships with several European and American tech firms.

However, the path of listing in the U.S. is not without challenges. First is regulatory uncertainty. In recent years, the U.S. Securities and Exchange Commission SEC has imposed stricter requirements on Chinese companies, particularly regarding audit working papers and data security. The implementation of the Holding Foreign Companies Accountable Act HFCAA has exposed some firms to delisting risks. While some companies have responded by restructuring and improving information disclosure, overall coordination between Chinese and U.S. regulators still requires time.

Second, differences in market perception and culture also pose major challenges. U.S. investors tend to emphasize long-term value, corporate governance, and sustainable development, whereas some Chinese companies may still be in the process of strengthening these areas. For example, several Chinese-listed companies have suffered from short-seller attacks due to issues such as financial fraud and lack of transparency, leading to sharp declines in stock prices and eroding investor confidence. Improving corporate governance and enhancing transparency are essential steps Chinese companies must take before entering international capital markets.

Third, geopolitical factors also exert pressure on Chinese companies listing in the U.S. Although the economies of China and the U.S. are highly complementary, trade, technological, and financial tensions have occurred in recent years. Such uncertainty can affect investor sentiment, especially during periods of market volatility, when Chinese stocks often become targets of emotional reactions. In response, many companies have begun exploring dual listings or secondary listings in Hong Kong to diversify risks and broaden financing channels.

Notably, since 2025, progress in Sino-U.S. communication regarding audit oversight has eased delisting concerns for Chinese firms. According to the latest report from the U.S. Public Company Accounting Oversight Board PCAOB, on-site inspections have been conducted at Chinese accounting firms, and audit opinions have been issued for some companies. The market has interpreted this as a positive signal, creating a more favorable environment for future U.S. listings by Chinese enterprises.

Looking ahead, the road for Chinese companies listing in the U.S. will remain one filled with both opportunities and challenges. For companies aiming to enter the global stage, a U.S. IPO is not only a financing tool, but also a valuable opportunity to enhance governance and expand global perspectives. In the face of a complex and changing external environment, it is even more critical for companies to strengthen compliance and improve core competitiveness in order to achieve long-term success in international capital markets.

The wave of Chinese companies listing in the U.S. reflects the deep integration of capital, technology, and markets in the era of globalization. For both enterprises and capital markets, this is a process of mutual benefit and shared development. Going forward, as China and the U.S. continue to align in areas such as financial regulation and market mechanisms, the path for Chinese companies to list in the U.S. may become clearer, offering global investors more high-quality investment opportunities.