Date
22 September 2017
Chinese firms raised a combined US$29 billion on Wall Street in 2014, including a record US$25 billion by Alibaba. This year, the amount is down 98 percent as Chinese companies choose the domestic stock market for their IPOs. Photo: Reuters
Chinese firms raised a combined US$29 billion on Wall Street in 2014, including a record US$25 billion by Alibaba. This year, the amount is down 98 percent as Chinese companies choose the domestic stock market for their IPOs. Photo: Reuters

Chinese firms shunning Wall Street for domestic IPO market

Chinese companies are choosing the domestic stock market for initial public offerings  in favor of Wall Street.

Bloomberg is reporting that IPOs by Chinese companies in the US have plunged this year as new listings in the mainland have skyrocketed.

Companies domiciled in China have announced 14 IPOs on US exchanges this year worth a combined US$666 million, the fewest deals since 2013 and the smallest volume since 2011.

The combined dollar amount is down 98 percent from US$29 billion in 2014, which included Alibaba Group Holding Ltd.’s record US$25 billion sale.

Excluding the e-commerce company’s IPO, volume is down 84 percent. This year is set to be the third-slowest since 2003.

In the mainland, companies are going public at the fastest pace in at least 12 years.

There have been 531 deals announced in 2015 worth a combined US$17 billion, exceeding last year’s total volume by by 33 percent.

China last month ended a five-month freeze on new stock sales, which was one of the measures officials took to contain an equity rout that wiped out as much as US$5 trillion in market value from mid June through late August.

A record number of US-traded Chinese companies also are seeking to move their stocks back to the mainland.

The latest, Trina Solar Ltd., said Monday that its chairman and founder, Jifan Gao, offered to take the company private, bringing the total number of such proposals this year to 38, five of which have been completed.

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