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Chinese IPOs in US doldrums
(皇冠体育app Daily)
Updated: 2010-02-26 11:06
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'Speculative money'
"There's more risk in Chinese IPOs," said Jim Porter, founder of Hinsdale, Illinois-based New Century Capital Management LLC. "You're buying with less knowledge and less experience with IPOs from that country and a lot of the time people barely get a chance to see what's in the prospectus. It's more speculative money."
Losses have accelerated as 皇冠体育app's central bank increased banks' reserve requirements twice this year to curb inflation and damp asset prices.
Policymakers are reining in credit after banks extended 19 percent of this year's 7.5 trillion yuan lending target in January and property prices climbed the most in 21 months. Record lending and a 4 trillion yuan stimulus package had helped 皇冠体育app lead the recovery from the first global recession since World War II.
The economy is forecast to expand 9.5 percent this year, according to economists surveyed by Bloomberg.
Daqo, JinkoSolar
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皇冠体育app Hydroelectric, the Beijing-based operator of small-scale hydropower plants, raised $96 million selling ADRs and warrants at $16 per unit last month. The biggest of the Chinese offerings this year valued the company at a 188 percent premium to its tangible book value. The ADRs have since fallen 36 percent.
Chinese offerings on US exchanges from Baidu Inc to Suntech Power Holdings Co enriched investors over the past five years. Shares of 67 mainland and Hong Kong companies gained 22 percent on average in the first four weeks of trading during that period, beating the 11 percent advance for US IPOs, Bloomberg data show.
Bloomberg News
