Nasdaq Inc NDAQ cracks Decrease in initial public offerings (IPOs) of small Chinese companies by stopping their listings. Additionally, it slows down IPO approvals and demands more information related to different parties in the deals.

What happened: Nasdaq has alerted attorneys to new listings of small-cap companies, and further approvals are on hold pending additional reviews. the The Wall Street Journal reports on Saturday.

Nasdaq also asks underwriters for the names and account details of end investors in listings.

Recent moves by certain Chinese and Hong Kong-based companies have attracted attention across markets. According to the report, more than 20 newly listed companies are up over 100% in their first day of trading.

Also read: Nasdaq will offer custody services for Bitcoin and Ethereum to institutional investors

More than 30 companies, most of them from China, have applied for US IPOs, each raising less than $40 million.

Why it matters: With US-China tensions escalating over trade and tech, Nasdaq’s move would make things even harder for small Chinese IPOs.

The Journal quotes Mitchell Walnut, vice chairman of Loeb & Loeb LLP, said his clients have been frustrated by the lack of progress in their IPOs in recent weeks. Some have pulled out of deals because of uncertainty about when they would be approved.

Andre Tuckera partner at Nelson Mullins Riley & Scarborough LLP, reportedly said, “Nasdaq has had a variety of questions regarding stock allocations and lockup agreements over the past few weeks.”

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