Since early 2015, 47 Chinese companies have received combined offers of $43 billion in funding from private equity houses and Chinese internet giants to delist from American exchanges and make a run for the domestic stock markets. So far 14 of them have delisted and none of them have managed to complete the journey and re-emerge on a Chinese exchange. The sudden desire to rush for the exit represents a swift reversal of a quarter-of a-century flow of Chinese companies to the West. It is the result of two factors: poor performance of many Chinese companies on western exchanges, and the much higher valuations that companies can command in China.
A clutch of Chinese companies are preferring to delist from foreign stock exchanges due to the boom in the Shanghai and Shenzhen stock exchanges.
Chinese companies facing low valuations on US stock exchanges have some options left on the table When investors think a company’s market price is undervalued, they can buy the company’s shares. But when a company thinks itself to be undervalued by the market, it sometimes opts to buy out the investors. Such is the case […]