A newly updated Nasdaq listing application by QMSK Technology Co. Ltd. is most noteworthy for a huge upsizing of the company’s fundraising plan, rather than any news about this provider of aftermarket services for the auto insurance industry. But the supersizing of its fundraising target to as much as $37 million from a previous $9 million hardly reflects any new confidence by the company in strong investor appetite for its shares.

Instead, the radical upsizing appears to be the direct result of a looming crackdown by the Nasdaq announced earlier this month on small new listings by Chinese companies. Such listings have come to dominate new IPOs by Chinese firms on the Nasdaq, often raising miniscule sums of $10 million or less. They also typically contain very small floats, with well under 10% of a company’s shares typically available for trading.

The result of such small floats is often big price volatility, usually to the downside, which can leave less sophisticated retail investors with big losses when stock prices suddenly plunge. Compounding this issue is very aggressive valuations that many of these small Chinese companies list at, making big drops in their share prices post-IPO almost inevitable.