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.
Goodbye New York! Hello Shanghai!
A clutch of Chinese companies are preferring to delist from foreign stock exchanges due to the boom in the Shanghai and Shenzhen stock exchanges.
Taking Stock: Chinese Companies Navigate International 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 […]
Follow us