LAST year it seemed that a Chinese invasion of American stockmarkets was under way. More than a dozen firms from the mainland floated shares in New York, raising $30 billion in total. Alibaba, an e-commerce firm, led the pack with one of America’s biggest initial public offerings on record. However, as rapidly as it rose, this red tide is now ebbing.
A growing number of Chinese firms are now seeking to delist from American exchanges, and to relist back home. According to Bloomberg, a data service, investors in a dozen listed firms have received bids this year totalling over $10 billion to take them private so as to relist them in China. Among them were Sungy Mobile, a maker of smartphone apps, and Shanda, which designs online games. On June 17th Qihoo 360, a software firm, became the latest to join the wave. Mindray, a medical-devices company, and Wuxi Pharmatech, a medical-research firm, are expected to follow.
One obvious reason for this is China’s current stockmarket frenzy—especially for internet shares. A listing in New York once meant higher valuations for Chinese startups than were possible on moribund Chinese exchanges. Western investors, used to Silicon Valley’s profitless but promising upstarts, were more understanding. An American listing was also regarded as a stamp of quality.
But Americans have fallen out of love with Chinese...Continue reading
Source :Business and finance http://ift.tt/1IQybji
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