LAST year it seemed that a Chinese invasion of American stockmarkets was under way. More than a dozen firms from the mainland floated shares in New York, raising $30 billion in total. Alibaba, an e-commerce firm, led the pack with one of America’s biggest initial public offerings on record. However, as rapidly as it rose, this red tide is now ebbing.
A growing number of Chinese firms are now seeking to delist from American exchanges, and to relist back home. According to Bloomberg, a data service, investors in a dozen listed firms have received bids this year totalling over $10 billion to take them private so as to relist them in China. Among them were Sungy Mobile, a maker of smartphone apps, and Shanda, which designs online games. On June 17th Qihoo 360, a software firm, became the latest to join the wave. Mindray, a medical-devices company, and Wuxi Pharmatech, a medical-research firm, are expected to follow.
One obvious reason for this is China’s current stockmarket frenzy—especially for internet shares. A listing in New York once meant higher valuations for Chinese startups than were possible on moribund Chinese exchanges....
from The Economist: Business http://ift.tt/1CfhIjT
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