Despite increasing interest in Chinese listings overseas, the process is becoming more complex, according to NYSE's Ge.

• According to Kobe Ge, head of China at the New York Stock Exchange, there is a robust desire among Chinese companies to list in U.S. stock markets.
• Although Covid-19 and lockdowns have had a negative impact, there is still a growing awareness and motivation among Chinese enterprises to list their companies on the NYSE, according to a speaker at the CNBC's East Tech West conference in Guangzhou, China, on Tuesday.

The process of listing Chinese companies on U.S. stock exchanges has become more complicated, according to Kobe Ge, the head of China at the New York Stock Exchange, despite a strong appetite among these companies.

Although Covid-19 restrictions and U.S. regulatory uncertainty negatively impacted listings in the U.S. last year, Chinese businesses are still showing strong interest in listing in the U.S., according to a statement made by a representative at the Nansha district of Guangzhou, China, on Tuesday.

He mentioned that the procedures have become more challenging recently because they are not as familiar with them, according to a CNBC translation of his Mandarin-language remarks.

Ge stated that previously, listing in the U.S. was straightforward and could be accomplished in about four-and-a-half to five months for Chinese firms to complete a U.S. IPO.

The China Securities Regulatory Commission's new rules may necessitate a 12-month preparation period for a company to implement new procedures, according to him.

Since March 31, new measures have been put in place for domestic companies looking to list in the U.S. or Hong Kong. These measures include a filing process and compliance with national security measures and personal data protection laws before going public overseas.

This year, the few Chinese companies that have successfully listed in the U.S. IPO market are mostly smaller in size.

Uncertainty among Chinese companies and investors has been caused by the increasing political tensions between Washington and Beijing, as stated by Ge.

In August, U.S. President Joe Biden signed an executive order aimed at controlling new U.S. investments and expertise that supports China's development of sensitive technology. The new measures, set to be implemented next year, will focus on investment in semiconductors and microelectronics, quantum computing, and specific artificial intelligence capabilities.

Ge stated that since specifics about the changes have not been released, everyone may be watching and waiting, which may cause investors to wait and see before making any decisions.

Strong IPO pipeline

Chinese listings in overseas markets will recover if domestic companies concentrate on strengthening their businesses, according to Still.

He compared the situation to a ship at sea, emphasizing the importance of both paying attention to the weather and ensuring the ship's construction.

So, investors are now prioritizing established business models and consistent profits over rapid growth, as stated.

Ge predicted that the U.S. IPO market would improve from April to October next year.

Robert H. McCooey, Jr., a Nasdaq vice chairman, stated that there is a robust pipeline of Chinese companies planning to list on the exchange in the near future.

He stated in a separate session at CNBC's East Tech West event that he believed there were 116 individuals on file or who would be filing soon.

The new process by CSRC has made it more interesting for everyone in China and around the world to see the companies that are in the process, as the regulations have come through.

In a recent CNBC interview, McCooey mentioned a significant increase from the previously highlighted 65 Chinese companies to a marked increase.

According to official data, there were 252 Chinese companies listed on the U.S. exchanges, including NYSE, Nasdaq, and NYSE American, with a total market capitalization of $1.03 trillion as of January 2023.

We're thrilled that a few of our listings have undergone the CSRC process and we anticipate three or four more approvals in the near future," he stated. "This should boost the confidence of companies looking to list outside of China.