CCTV.com - CNTV English - CCTV News

Nasdaq: Dreamland and 'Thornfield' for Chinese companies

08-18-2011 08:42 BJT

Watch Video

Play Video

Over the past few years, more and more Chinese companies have listed on US Exchanges, especially the Nasdaq. The journey usually starts well, but they can easily lose their way.

Nasdaq is the dream destination for Chinese companies seeking overseas IPOs. And the deal seems to benefit both sides. It means US investors can profit from China's robust economic growth, while ambitious Chinese companies can attract global finance.

China was recognized as so important and full of potential by Nasdaq, that in April 2007, its opening bell was rung in Beijing. It was the first time that the Nasdaq bell had rung in another country, and it was the first US Exchange to open in China.

After the 2008 financial crisis, the Chinese market became even more important to the struggling US capital market. By the end of 2010, a total of 167 Chinese companies had listed on the Nasdaq.

And their performance was outstanding. Figures in 2009 show that the average price per earnings ratio for listed Chinese companies was around 130 percent.

Their high revenue soon raised suspicion. A Barron's report in early October last year, warned investors of the risks involving Chinese firms that have gone public in the US through reverse mergers.

In December, the Security and Exchange Commission of the US probed such allegations. A similar story happened last June, resulting in shares of US-listed Chinese companies tumbling.

They included ku6.com, an online video site, whose shares plunged more than 14 percent, to an all-time low. 25 Chinese companies have now been suspended or de-listed and alleged accounting frauds now haunt Chinese firms.

 

Editor:Zhang Dan |Source: CNTV.CN

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