More than 80 Chinese companies have delisted their shares from U.S. exchanges since 2019, according to data provider Wind. Around 275 China-based companies now represent less than 2% of the capitalization of shares traded on the New York Stock Exchange and Nasdaq.

Chinese initial public offerings still pour in—in fact, 2024 saw the highest number in years—but most are tiny, highly speculative stocks, not the megabillion-dollar “red chips” of yesteryear. The 62 Chinese offerings last year raised an average of under $7 million. Some struggle to maintain the minimum 300 public shareholders, a red flag for investors that they could be risky or outright scams.

IDRs are a way for foreign companies to offer their shares to Indian investors indirectly. They are similar to Global Depository Receipts (GDRs) or American Depository Receipts (ADRs), but in this case, the shares are listed on an Indian exchange in the form of rupee-denominated receipts.