A rising number of Chinese companies, listed in the US, are returning home encouraged by rising stock prices. Bloomberg looks at Sequoia Capital China, one of the firm organizing the shift, and accounting professor Paul Gillis gives his take on the trend.
Category Archives: NYSE
The proposed law for foreign investments is up for discussion, and offshore VIE companies controlled by Chinese would be treated as domestic companies, legalizing current practices. Accounting professor Paul Gillis lists the winners and losers of the proposed law on his weblog.
What is the room for newcomers in China´s e-commerce after Alibaba´s successful IPO? WSJ wealth editor Wei Gu discusses with Jef Walters of Boston Consulting, and finds that massive growth is still possible. Only half of China´s internet users is purchasing online, and mobile is still taking off in a country where most users have mobile.
Despite its close to US$22 billion IPO at the New York Stock Exchange today, business analyst Shaun Rein does not see in Alibaba a real global company. “Its model is not scalable in other large market like the US and Indonesia”, he says at has much work to do at home, especially on mobile where it is lagging.
Will Alibaba use the capital gained from its IPO to expand fast internationally? China consultant Joel Backaler, expert on China´s outbound investments, does not think so, and explains in Forbes why Alibaba will be tied up at the domestic market at least in the short run.
VIE structures are highly scrutinized and Beida professor Paul Gillis is fighting those structures via the Cayman Islands and other tax havens, although they need economic reforms to be iradicated. On his accounting website he looks at the IPO document Alibaba had to file and awards them the golden VIE standard.
Getting listed is notorious difficult for Chinese companies, because getting permissions in mainland China is tough. But there is hope, writes professor Paul Gillis in the Wall Street Journal, as regulators in China and Singapore recently signed an agreement to let private companies list directly. Now such an agreement is needed between China and the US.
The fairy tales of sky-high valuations for China internet companies at exchanges in the US seem over, yet again. Financial analyst and VC William Bao Bean expects a return to realistic valuations, in a soft landing, he tells The Australian.
Long term China bull Shaun Rein warns against buying into listed Chinese companies, since in many cases they offer a receipt for trouble, he argues in CNCN. Not all NASDAQ listed Chinese companies are bad, but investors have to be very cautious.