Nasdaq has proposed new rules to make it more difficult for some Chinese firms to list on its stock exchange.

Its proposals would mean companies from certain nations would have to raise at least $25m (£14.4m) or a quarter of their post-listing valuation to list. Tougher accounting rules will also apply for listings, which are called Initial Public Offerings (IPOs). The announcement comes as tensions increase between the US and China in the wake of the Luckin Coffee scandal.

The proposed regulations do not single out Chinese businesses but do include additional measures for companies that mainly operate in countries whose laws make it hard for American authorities to conduct investigations.

“The risks to US investors are heightened when a company’s business is principally administered in a jurisdiction that has secrecy laws, blocking statutes, national security laws or other laws or regulations restricting access to information by regulators of US-listed companies in such jurisdiction,” Nasdaq said.

It comes at a time when rising tensions between Beijing and Washington in recent months makes co-operation over financial market regulations far less likely. US-China relations have worsened amid accusations about the coronavirus pandemic.

Last week, Donald Trump moved to block a federal retirement fund from investing in Chinese companies. The US president also said he was looking at Chinese companies that are listed on American stock exchanges but do not follow US accounting rules.

The plans are subject to approval by the US financial watchdog, the Securities and Exchange Commission.