Reuters: China Technology companies are fleeing the US stock market
Recently, according to Reuters, more and more Chinese technology company intends to delisting from the US stock market, returned to China after re-listed.
China’s stock market is very hot recently, many Chinese technology company executives hope after the handover can be good to get a higher share price. They also want to avoid to avoid trouble with the law, because the Chinese government has formally introduced legislation to prohibit Chinese companies protected the technology sector is controlled by foreign investors.
Chinese high-tech enterprises in return, would allow a Wall Street underwriters have a profitable business end. Last year, the largest in the history of Alibaba, the scale of $ 25 billion in an initial public offering (IPO), has created more than 300 million US dollars of income for Wall Street underwriters.
But the lure of some data is hard to resist. This year, China-based technology company GEM index rose nearly 1.8 times so that, by contrast, the NASDAQ OMX China Technology Index over the same period rose only 30 percent.
Currently, the average price-earnings ratio of Chinese companies listed on the NASDAQ 11 times, while China GEM’s price-earnings ratio of 133 times on average. Which is more appropriate to have a greater earnings controversy, but Chinese technology company executives often accused the US investors do not understand Chinese enterprises operating conditions.
Chinese game company listed on a US executive, said: “US investors do not understand the Chinese game company’s business model.” The company is planning to withdraw the game from the US stock market, and back home again listed.
Earlier this year, Chinese game companies in the United States listed Shanda and Perfect World, said they would be privatized. The online dating service Jiayuan companies and medical research and development services provider WuXi also said they are considering launching the privatization process.
Analysts expect, if possible, as well as dozens of lesser-known concept stocks will keep pace with the above-mentioned companies. At the same time, these analysts found that fewer Chinese companies trying to go public in the United States.
CEO Shu Yi advertising technology company Beijing Science and Technology of the United States said: “The possibility of (our) very little investor interest in the US.” The company recently abandoned plans in the United States, now intends to carry out in Shanghai or Shenzhen IPO.
On Thursday, Chinese Premier Li Keqiang to encourage more overseas listed companies return to A shares, especially those with “special ownership structure” of the enterprise.
China is investing funds to assist the return of overseas listed companies. Chinese investment bank Renaissance has cooperation with CITIC Securities, to raise funds to help Chinese stocks delisting, as well as its re-listing in the country to provide underwriting services. Mukden management consulting firm launched a FOF fund to help Chinese stocks return to the domestic stock market.