A new US listing registration by the Chinese securities regulator — the first in four months — signals that compliant channels for Chinese firms seeking to go public in the United States remain open, with authorities still in place to facilitate qualified listings, sources and experts said.

The registration comes alongside the first penalty case for breaching offshore filing rules, with the case warning firms not to sidestep domestic registration requirements for overseas listings, underscoring consistent regulatory standards and strengthened enforcement, experts said.

On Friday, the China Securities Regulatory Commission, the country's top securities regulator, approved a registration from DSC Holdings Ltd, a software company operating in Zhejiang province, seeking to list on the Nasdaq — the first US listing registration since Dec 12, 2025.

The registration system, which went into effect in 2023, requires domestic companies seeking overseas listings, directly or indirectly, to submit materials to the regulator regarding key compliance issues for registration.

The CSRC stressed that while it will continue to support qualified companies in tapping overseas markets in compliance with rules, it is also stepping up enforcement against illegal activities and strengthening cross-border regulatory cooperation to safeguard market order and investor rights.

Also on Friday, the commission said its Heilongjiang bureau has issued a prior notice of administrative penalties against a domestic company and related intermediaries for failing to complete required registration procedures before listing overseas.

The case marks the first enforcement action under the registration system since it was launched.

The CSRC said that it found that Zhong Guo Liang Tou Group Ltd, a food company based in Heilongjiang province, had proceeded with a listing on the Nasdaq via a merger deal without completing the registration process with the domestic regulator.

Proposed penalties include fines on the company, responsible executives and intermediary institutions involved in the case, totaling 5.2 million yuan ($762,135), according to the CSRC.

Liu Jing, a senior partner at Dacheng Law Offices, said that prior to the penalty case, there emerged a rising number of small and medium-sized companies seeking to bypass the CSRC filing by claiming exemption when pursuing overseas listings.

"The case highlights that companies with domestic ties must follow the 'substance over form' principle, with thorough checks to determine whether they fall under offshore listing filing requirements," Liu said.

Companies that fall short of financial or operational thresholds may still likely be deemed subject to the CSRC filing if their substance remains China-related, with key indicators including China-focused risk disclosures, onshore equity ties and mainland-based staff or operations, Liu added.

Zhong Guo Liang Tou traded only for hours before being suspended by the Nasdaq, and further arrangements are pending decisions by US regulators and the exchange, with Chinese authorities maintaining communication and coordination with their counterparts.

The company claimed in filings with the US Securities and Exchange Commission that it has satisfied its obligations with respect to the CSRC and has received a legal opinion from its Chinese securities counsel to that effect.

Data released by the CSRC on Friday showed 271 companies are currently undergoing the offshore listing filing process, including 52 targeting the Nasdaq, 218 Hong Kong and one for the Taiwan exchange.