China IPOs: Record number of US IPOs by Chinese companies spell opportunity

Posted November 14, 2007

“In 2007, Chinese companies have represented 12% of all US IPOs, eclipsing all other foreign companies’ US IPOs combined.”

Today’sFinancialNews.com

Wednesday, November 14, 2007

Baltimore — (TFN): According to a report by US-based Renaissance Capital, the number of Chinese IPOs on the New York Stock Exchange and NASDAQ is growing at a record pace.

In 2007, Chinese companies have represented 12% of all US IPOs, eclipsing all other foreign companies’ US IPOs combined. The most popular have been new emissions in the internet, solar energy, online gambling, and telecommunications sectors.

That’s good news for US investors who have been starved out of profitable IPOs thanks to the Sarbanes-Oxley Act: Chinese companies trading in the United States as ADRs offer a relatively easy and profitable way for US investors to take advantage of Chinese IPOs happening in Hong Kong and Shanghai. If a company listed on a US exchange goes public on a Chinese market, the US-listed stock often experiences a considerable boost in its share price. (Taipan calls it the “Backdoor IPO syndrome”.)

****Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Click here to pick your favorite reader. If you prefer to have the feed delivered to your email, just click here.