How Can Domestic Companies Successfully List on U.S. Stock Markets? A Comprehensive Guide to the Entire IPO Process

How to List Your Company on U.S. Stock Markets A Comprehensive Guide for Chinese Enterprises

In recent years, with sustained economic growth and the deepening of international strategies, an increasing number of Chinese enterprises have turned their attention to overseas capital markets, particularly the U.S. financial system. The U.S. stock market, known for its mature regulatory framework, high liquidity, and broad participation from global investors, has become a key platform for overseas fundraising by Chinese companies. Despite some regulatory tensions between China and the U.S. in recent years, many Chinese companies have still successfully gone public in the U.S. For example, in July 2025, NewLink, a provider of EV charging solutions, successfully listed on NASDAQ, becoming one of the representative IPO cases of that year.

So, how can Chinese companies successfully list in the U.S., and what are the key steps involved? This article provides a comprehensive overview of the U.S. listing process for Chinese enterprises, covering preparation, legal structure, auditing and compliance, roadshow and issuance, and post-listing maintenance.

1. Clarify Listing Goals and Select the Appropriate Market Tier

The major U.S. stock exchanges include the New York Stock Exchange NYSE, NASDAQ, and the American Stock Exchange AMEX. Among these, NASDAQ is often preferred by emerging companies due to its technology-friendly environment and relatively lower listing requirements.

Before pursuing a U.S. listing, companies must first define their objectives-such as raising capital, enhancing international brand recognition, or providing an exit mechanism for shareholders. They should also evaluate whether their financial condition meets the minimum listing standards of the chosen exchange. NASDAQ, for instance, sets requirements related to market capitalization, shareholder equity, and revenue. Companies must choose the appropriate path, such as an initial public offering IPO or a merger with a special purpose acquisition company SPAC.

2. Establish a Suitable Legal and Equity Structure

Due to differences between Chinese and U.S. legal systems, Chinese companies typically need to restructure their legal and equity frameworks before listing in the U.S. A common approach is to establish an offshore holding company-often in the Cayman Islands-and use a Variable Interest Entity VIE structure to control the domestic operating entity. This allows companies to circumvent restrictions on foreign ownership in certain sectors.

For example, many Chinese internet companies have historically used the VIE model to list overseas. While this structure faced some regulatory scrutiny in 2025, it was not completely banned. In 2025, the China Securities Regulatory Commission CSRC and other authorities introduced the Trial Measures for the Administration of Overseas Issuance and Listing of Securities by Domestic Enterprises, which further standardized the overseas listing process and emphasized a filing-based regulatory system. Companies are now required to file with regulators in advance and fulfill disclosure obligations.

At the structure design stage, companies should consult legal and financial professionals to ensure compliance with both Chinese and U.S. regulations, particularly with regard to SEC disclosure requirements.

3. Financial Audit and Compliance Preparation

Companies listing in the U.S. must undergo audits conducted in accordance with the standards of the Public Company Accounting Oversight Board PCAOB. Previously, audit-related disputes between China and the U.S. posed challenges for some Chinese companies seeking to list. However, in 2025, the U.S. and China signed an audit oversight cooperation agreement, allowing PCAOB to resume inspections of Chinese accounting firms, thereby removing a key obstacle.

Companies must prepare financial statements in accordance with either U.S. Generally Accepted Accounting Principles GAAP or International Financial Reporting Standards IFRS, ensuring the accuracy and completeness of financial data. Additionally, they must establish internal control systems that meet U.S. listing requirements, such as those outlined in Section 404 of the Sarbanes-Oxley Act SOX.

4. Submit IPO Application and Navigate SEC Review

The core step in the U.S. listing process is submitting the IPO registration document-Form F-1 for foreign private issuers or S-1 for U.S. domestic issuers-to the U.S. Securities and Exchange Commission SEC. The document must include detailed disclosures about the company’s business model, financial condition, risk factors, governance structure, and more.

The SEC typically conducts multiple rounds of review, raising questions and requesting additional information. For example, a biotech company that successfully listed in 2025 went through several rounds of SEC feedback, with questions covering intellectual property, clinical trial data, and related-party transactions. The review process can last several months, and companies must work closely with legal counsel and auditors to ensure accurate and compliant responses.

5. Roadshow and Pricing the IPO

After receiving SEC approval, the company enters the roadshow phase, during which it promotes its business and investment value to potential investors. These roadshows are typically held in the U.S. and Europe and are organized by underwriters. Company executives participate in multiple meetings to present the company’s growth prospects.

Following the roadshow, the company and underwriters negotiate the final offering price and size. This process is influenced by market conditions, industry trends, and investor sentiment. For example, the U.S. IPO market was sluggish in the first half of 2025 but gradually recovered in the second half, with several Chinese IPOs receiving strong investor interest.

6. Post-Listing Compliance and Information Disclosure

A successful IPO is just the beginning. Once listed, companies must continue to meet disclosure obligations, including filing quarterly reports Form 10-Q, annual reports Form 10-K, and current event disclosures Form 8-K. They must also comply with corporate governance rules set by NASDAQ or the NYSE, such as board independence and audit committee requirements.

Companies should also be mindful of anti-short selling mechanisms and investor relations management, establishing strong communication channels with the capital markets to maintain stock performance and market reputation.

Conclusion

Listing in the U.S. presents both opportunities and challenges for Chinese enterprises. While it offers access to a global financing platform, it also demands high standards of corporate governance, compliance capabilities, and international vision. Against the backdrop of deepening regulatory cooperation between China and the U.S., eligible companies still have the opportunity to achieve a U.S. listing through a compliant path. With early planning, strategic structuring, and the support of professional teams, Chinese companies can indeed write their own success stories on Wall Street.