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Experts still see opportunities in U.S.-listed Chinese stocks


10:12, November 01, 2011

NEW YORK, Oct. 31 (Xinhua) -- U.S.-listed Chinese stocks still have investment value, despite recent accounting and fraud issues, several experts told a business forum here on Monday.

Cheng Siwei, former vice chairman of the Standing Committee of the National People's Congress of China, said at the U.S.- China Innovation and Cooperation Conference that more regulation and supervision are needed for some of the U.S.-listed Chinese companies as they have problems in terms of information transparency.

Besides the transparency issue, accounting principles and differences between U.S. and Chinese regulations also cause concern for some Chinese companies, Managing Director of BlackRock Inc. David Munoz told Xinhua.

However, "there are still a lot of investment opportunities out there," he said.

Although some Chinese companies are not doing so well in the U.S. markets, some are doing great, Corporate Vice President of Global Equity Capital Markets of Nasdaq Karin McKinnell said.

"Baidu has grown 40 times since its IPO, it's really something," she said.

According to a Nasdaq survey, 31 percent of investors are "bullish" about Chinese stocks, 51 percent are "neutral," while only 18 percent are "bearish".

In sum, "investors are still confident about Chinese stocks," McKinnell said.

U.S. investors like to have an industry overview and know the competitive landscape, operational and strategic information and outlook of a company, she said.

"Wall Street likes to hear good stories," McKinnell said. "If companies tell them how they are going to grow and show them good results quarter after quarter, investors' confidence will grow."

Harry Edelson, an investor who has been focusing on investment opportunities in China for decades, said some Chinese stocks suffer huge price losses, but this was not their fault.

"Some reports said Chinese companies' financial data are too good to be true, that's not convincing," Edelson said. He believed that there are many good companies in China with solid financial results that have not been achieved with fraud.

For some investors, the delisting of some Chinese stocks is a good thing, according to Managing Partner of Heracles Investment Corp. Huang Weiqing. He said it is a cleanup process. "The good companies will remain in the markets, while the bad ones will not," he said.

He emphasized that the rapid growth of China's economy will attract investors who want to share that growth. "Investors will be still chasing the growth of China's economy," Huang said.

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