The Nasdaq Group will revise listing rules to expedite the removal of companies whose business conditions continue to deteriorate. Previously, regulators continued to focus on frequent sharp market fluctuations and allegations of market manipulation in micro market capitalization stock transactions. The US Securities and Exchange Commission approved a new regulation on Wednesday: if the market value of the listed securities of a NASDAQ listed company falls below $5 million for 30 consecutive days, trading of the company's shares will be immediately suspended and the delisting process will be initiated, and the appeal channels will be drastically narrowed. This set of more stringent listing standards is expected to fully impact the micro stocks and low price penny stocks markets. Regulators have warned many times before that the market is full of “speculation and sell-off” securities fraud carried out by digital means. The US Securities and Exchange Commission stated in an announcement that low-priced stocks with low market capitalization are more likely to be manipulated and subject to drastic trading fluctuations, and criminals only need a small amount of capital to influence their stock prices. The exchange operator proposed this new regulation in January this year and received support from mainstream Wall Street institutions such as Castle Securities, Carson Wealth Management, and the US Securities and Financial Markets Association; however, small and medium-sized listed companies, relevant lawyers and industry advisors strongly opposed it. Most opponents believe that this new regulation, which aims to curb illegal operations, will hurt startups that operate in compliance. Mark Indelia, Chairman of the Alliance of Small Public Companies, said, “This rule will deal a heavy blow to small and medium-sized enterprises, hinder corporate financing, and spawn bad speculative opportunities for small listed companies to short. This is contrary to the current core orientation of the Securities Regulatory Commission to 'revive the IPO market and broaden corporate financing channels'.” According to the data, at present, there are nearly 180 listed companies on the NASDAQ with a total market value of less than 5 million US dollars, which just hit the regulatory red line set by the new plan.

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