Nasdaq’s clampdown could drive Chinese penny stock firms back home

Nasdaq’s clampdown could drive Chinese penny stock firms back home

FILE PHOTO: Investors stand in front of an electronic board showing stock information at a brokerage house in Shanghai, China, February 15, 2016. REUTERS/Aly Song

A rule proposed by Nasdaq to clamp down on penny stocks that trade below a dollar could rewrite the fate of several China-based companies listed on the US exchange, pushing them towards the hands of a private equity (PE) fund or another bourse.

Edited by: Pramod Mathew