- CNTV English - CCTV News

Homepage > News > Biz >

US markets 'still attractive' for Chinese IPOs

12-15-2011 19:24 BJT

BEIJING - Initial public offerings by Chinese companies in the United States next year might not rebound to the record level of 2010, but recent world market turmoil is unlikely to change the attraction of US exchanges for Chinese companies, a senior executive at the NYSE Euronext Group Inc said on Tuesday.

Chinese IPO activity in the US has weakened significantly over the past six months because of market volatility and uncertainty about the global economy.

The valuations of Chinese stocks traded in the US have also declined because of tighter regulations in that country and allegations of accounting fraud by short-seller Muddy Waters LLC.

"I don't expect that there will be as many deals in 2012 as we saw in 2010," Scott Cutler, executive vice-president and co-head of US listings and cash execution at the NYSE Euronext Group, told a news conference in Beijing.

The New York Stock Exchange has seen only seven Chinese IPOs, raising a total of $1.5 billion, so far this year, compared with 22 Chinese IPOs, raising $2.8 billion, in 2010, according to the US exchange.

Cutler said the main reason for declining market valuations was investors pulling out of equities.

But he said the Chinese IPO pipeline for the US exchange remained strong for 2012, including "some significant" companies.

The poor performance of some Chinese technology companies in the US has led to speculation that some would delist from the US markets and go public in Hong Kong or Shanghai, where they could get higher valuations.

In October, Shanghai-based Internet companies - Shanda Interactive Entertainment Ltd and China Real Estate Information Corp - announced plans to delist in the US, as their shares were trading at lower valuations than their Hong Kong-listed competitors.

"Hong Kong, over time, will overtake the US as the preferred place of listing for Chinese technology companies," Bao Fan, chief executive officer of the Beijing-based investment bank China Renaissance Partners, was quoted by Bloomberg News as saying.

But Cutler said that some delistings of Chinese companies from US markets did not represent a longer-term trend. He added that the US markets were open to Chinese issuers and remained important for international investors.

"The US capital markets have been more robust than any other markets in the world. I do not see a trend of companies from other parts of the world coming to Asia more than the US," he said.

Yang Ge, the chief representative at NYSE Euronext's office in Beijing, said Chinese companies from the technology, media and Internet sectors will continue to lead IPO activity next year in the US, which remains a primary market for them to gain access to capital.

Editor:Zhang Hao |Source: China Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program