China curbs US stock listings for homegrown companies, Financial Times reports

(Reuters) – China’s securities regulator has clamped down on small homegrown companies listing on U.S. stock exchanges after many of them became vehicles for price-rigging, causing heavy losses for U.S. investors, the Financial Times reported on Thursday.

The China Securities Regulatory Commission said it intends to impose “tighter control” over U.S. listings of Chinese companies with small capitalisation and weak fundamentals, saying they are prone to market manipulation, the FT reported, citing four people close to the regulator.