2018-12-28 06:46:28 Source: Financial circles
Original title: 33 Chinese companies listed in the United States this year, the highest in eight years
US financial sector shares According to a report by the British Financial Times, in 2018 on the New York Stock Exchange and the Nasdaq, a total of 33 Chinese companies are listed, but market weakness affected the performance of these shares.
Although the recent trading situation threatens the cross-border movement of goods and disrupts financial markets, since 2010 the United States has been the best choice for Chinese companies to conduct initial public offerings (IPOs) abroad.
The 33 Chinese companies listed on the New York Stock Exchange and Nasdaq in 2018 include Tencent Music Entertainment, iQiyi video platform and electric car maker Nio.
However, the total amount of Chinese IPOs in the United States in 2018 was $ 9 billion, which is much less than $ 29 billion in 2014, thanks to an IPO of $ 25 billion by Chinese e-commerce giant Alibaba (BABA).
The number of IPOs of Chinese companies in the United States is much higher than 17 in 2017, but the highest figure appeared in 2010, when 39 companies completed an IPO.
Daniel Delany, manager of CIBC Private Wealth Management, said: "Due to the trading situation and the weak market, the level of Chinese companies issuing new shares in the US is unusual."
“That is, ultimately, Chinese companies will benefit from listings in the United States, as more and more institutional shareholders approve and ratings grow.”
However, the active trading volume this year did not lead to strong results. The average loss of investors who buy shares of Chinese IPO in the United States at the issue price is about 16%. In contrast, the Shanghai and Shenzhen indices of the 300 listed companies in Shenzhen and Shanghai fell by more than 20% over the same period last year, and the Hong Kong Hang Seng Index fell by about 14%.
“In 2018, Chinese companies did not perform well on the US stock market. In short, the main reason is the weak market. In addition, many of these shares have limited free circulation and new shareholders. Both of these possibilities are possible. Increased sales pressure. "
The battle for listed companies in China is on fire. In 2018, the Hong Kong Stock Exchange changed the listing criteria by allowing two-tier shares (i.e., “the same shares”) and opening the door for biotech companies that have not yet received income.
From the point of view of corporate governance, this approach creates a shareholder structure that allows the company's founder to maintain control over the company using super-voting rights if it is registered with a technology company and is in high demand in the market.
The Hong Kong Stock Exchange is still the largest listing company in China with 76 shares. China Tower has successfully become the largest IPO in financing this year. The total IPO of the Hong Kong Stock Exchange in 2018 is about 31 billion US dollars, that is, the year in which Chinese companies are listed in Hong Kong the most since 2010.
The number of IPO companies in China fell from 411 last year to 94, while revenue fell to $ 18 billion.
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