We've noted before that there seems to be cultural differences when it comes to Sarbanes-Oxley. Europeans tended to have more negative views, while Asian companies tended to be more positive [1]. That seems to be playing out in the exchange listing business. Eleven Chinese companies have listed on Nasdaq this year, more than in all of 2006. The country could soon become the largest foreign source of listings, overtaking the current leaders, Israel and Canada. Meanwhile, more European companies continue to list. It may be that Chinese companies are still searching for a certain legitimacy that a U.S. listing offers. For them, the costs of Sarbox are worth the added visibility. Now, if the liquidity they expect doesn't materialize, they could change their minds in a few years.

For more:
- here's an AP update [2]