The conventional wisdom, which the NYSE and Nasdaq are happy to trumpet, is that Sarbanes Oxley is hampering the efforts of U.S. exchanges to market to foreign companies. The numbers seem to suggest that IPOs in the U.S. have declined as IPOs on the LSE's AIM have risen. So how do you explain the flocking of Chinese companies to the Nasdaq? China now ranks behind only Israel and Canada for foreign listings, and most expect the growth to continue. This is despite Sarbox. The reason seems to be that, for now anyway, Chinese executives have decided the regulatory hassles are outweighed by the added trust, liquidity and cachet of a U.S. listing. Some have suggested that compliance is less onerous for small companies who face fewer changes when instituting compliance processes. In any case, this response seems a bit different from the standard European response.

For more on China IPOs:
- Here's an AP article via the Taipei Times