Nasdaq Proposes $5 Million Delisting Threshold, U.S. Companies Oppose

Nasdaq plans to introduce a new rule that would subject listed companies to delisting procedures if their market capitalization remains below $5 million for 30 consecutive days. This measure aims to combat manipulation in the overseas small-cap stock market. The proposal has faced opposition from small businesses in the U.S., which are concerned that the new rule could adversely affect companies with significant stock price volatility, thereby impacting their financing and business development. Last month, the U.S. Securities and Exchange Commission temporarily postponed the advancement of this proposal and decided to seek further public input. Currently, over 190 companies listed on Nasdaq have market capitalizations not exceeding $5 million, with nearly half of them headquartered in the United States.

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