Nasdaq will release new restrictions on IPOs that will restrict many Chinese companies from listing on the stock exchange in the future. Chinese companies listed in the US are facing increasing skepticism after Luckin Coffee admitted to fraud in April.
Why it matters: The new restrictions are likely to have a profound impact on Chinese tech startups. Many pick the New York-based bourse for going public, in part because of its relaxed rules.
Details: The tightened rules will not single out Chinese companies, but are prompted by fears over transparency and accountability specific to them, Reuters reported.
Watch: Thin ice for US-listed Chinese tech companies: Webinar playback
Context: In April, Nasdaq-listed beverage chain Luckin Coffee admitted to falsifying RMB 2.2 billion in sales.