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People's Daily Online>>China Business

China concept stock resumes overseas IPOs

By Dou Hongmei (Beijing Daily)

07:46, February 24, 2012

Edited and translated by People's Daily Online

Three Chinese Internet companies, China Auto Rental Inc, Vipshop Holdings, and AdChina, have successively filed with the U.S. Securities and Exchange Commission (SEC) in recent weeks for initial public offerings (IPOs), which has been regarded as a sign of recovery for Chinese concept-stock companies after a half-year freeze.

Shanghai-based online advertising service provider AdChina filed with the SEC on Feb. 17 for an IPO on NASDAQ, hoping to raise 100 million U.S. dollars with Goldman Sachs Asia and Credit Suisse as lead underwriters.

On the same day, online discount luxury retailer Vipshop applied to raise up to 125 million U.S. dollars on the New York Stock Exchange (NYSE) with Goldman Sachs, Deutsche Bank, and Oppenheimer & Co as underwriters.

China Auto Rental, the largest vehicle leasing agency in China by fleet size, applied on Jan. 18 to raise about 300 million U.S. dollars on the NYSE. China Auto Rental is the first Chinese company to file for a U.S. listing after the SEC changed certain rules in December 2011.

Chinese concept-stock companies had extremely hard times during the second half of last year after the biggest wave of overseas IPOs ever during the first half of last year. During the period, The NASDAQ China Index dipped nearly 40 percent, and the share prices of many U.S.-listed Chinese companies fell below their IPO prices, forcing Shanda Literature, Shenzhen Xunlei Network Technology Company, Lashou.com, and other Chinese companies to delay their IPOs.

There remains strong demand in China for overseas listings and financing. Yang Rui, chief representative of U.S. investment bank Piper Jaffray in China, said that at least 20 Chinese companies are queuing up to launch IPOs overseas.

According to a report recently released by China Merchants Securities, Chinese concept stock is facing considerable stock price volatility and relatively cheap valuations, but there is likely to be a reduction in market pessimism in the second half of the year.

Email|Print|Comments(Editor:张洪宇)

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  1. Name

fool at 2012-02-24117.242.144.*
the world is now for china china should be ready to compete with whole world countries chief strategists analysts planners everybody and prepare to beat their estimates.chinese need to beat and lead principle the more u stronger the more ur thoughts are different but excellent than others top people mental extreme capacity then u r capable otherwise u have no right to think urself a superpower.superpower comes with responsibility to protect to show path to world to show people a good life a decent life new excellent thinking people are fed up with same 70 years old theory freedom of speech freedom of speech,religion who will come with new things whose responsibility is this.who will show new things socialism is about total development of everybody china needs to show the world u have not eradicated poverty we have did it no body is malnourished here no body is hungry everybody has medical treatement money is not a problem no body do suicide due to loan or bad debts no children dies due to hunger what the great freedom of speech advocators people has done on this a big big very big zero,no body has bad mental health china people below poverty line shld become zero beat all economists theory show u were wrong we were right.poverty is human science not economy.grow by 30 to 40%.what 11 or 12%.food consumption is not important quality is important.
PD User at 2012-02-2476.124.224.*
Chinese companies MUST BE AWARE that U.S is still prejudice or discriminates Chinese companies.Sounds stupid for them to IPO in U.S.You won"t get even centsfrom me
  

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