Chinese companies head for US listings
Chinese firms are flocking to the initial public offering market in the United States in their biggest numbers since 2010, drawn by soaring valuations for technology start-ups and undeterred by a flare-up in an accounting row between Washington and Beijing.
Chinese firms are flocking to the initial public offering market in the United States in their biggest numbers since 2010, drawn by soaring valuations for technology start-ups and undeterred by a flare-up in an accounting row between Washington and Beijing.
The return to US shores comes on the back of renewed investor enthusiasm for China plays, particularly for internet stocks.
Transaction volume in the country's online retail market jumped 42 per cent last year to 1.85 trillion yuan (HK$2.35 trillion) and was expected to almost double by 2016, figures from iResearch showed.
That has trumped lingering concerns about accounting irregularities and corporate governance issues that have forced many US-listed Chinese firms to be delisted since 2011.
The delistings have prompted US investors to be more discerning about share offers from China this time round. The bar for Chinese companies seeking US deals is higher, improving the quality of recent offerings, bankers say.