2011 is not a good year for Chinese companies already listed in the US and about to go public in the US. Since the beginning of the first half of the year, due to the impact of the European debt crisis and the US debt crisis, the global stock market has been bleak, and various Chinese concept stocks in the US capital market have not been able to protect themselves from the New York Stock Exchange to the NASDAQ. All stocks have declined to varying degrees, and the magnitude of this decline far exceeds the decline of the three major US stock indexes. According to statistics, in May 2011, the China's China 30 index fell 13.62%, while the three major US indexes Dow, Nasdaq and S & P fell only 1.88%, 1.33% and 1.35% respectively. By June, Chinese concept stocks were even more “hunted†by US short-selling agencies, including 19 US-listed companies including UT Starcom, Suntech, Hangmei Media, etc., whose stock prices fell by more than 10% in a single month , The decline is between 10% and 20%. In July, Shanda Literature and Thunder, which had attracted attention from the outside world, announced that they would postpone the listing before the listing, making the number of Chinese companies in the US market zero in that month. In August, Tudou.com, which had delayed its listing for several months, broke the market after the IPO opened. The price dropped 11.38% from the issue price; no other Chinese company went public in the United States in September. Since October, no Chinese company has ever heard of any plans to go public in the United States. On October 13, Thunder, which had postponed its IPO plan to the United States several times, officially submitted documents to the SEC, saying that due to the weak US economy and the deterioration of the European debt crisis, the capital market was cold, and the company finally decided to cancel the IPO plan to Nasdaq. This has made Chinese companies going to the US listed in October once again zero. Chinese concept stocks have been in the U.S. capital market for a long time, and are highly sought after by U.S. investors. What caused them to be bearish on such a large scale in the U.S. market this year? When can we pick up? When can the stock prices of Chinese concept stocks stop falling and rise? All have become a topic of common concern in the industry. Hard times for Chinese concept stocks For Chinese concept stocks, 2011 is undoubtedly the most difficult time. The stock prices of listed companies have plummeted, some have even been transferred to the US Pink Sheet market, and others have been ordered to stop delisting. In July, Interactive Brokers, the largest non-bank brokerage in the United States, also listed 132 Chinese concept stocks on the blacklist of margin financing and securities lending business; the SEC was the first risk warning for Chinese concept stocks investing in reverse takeovers. In this regard, Zhu Ning, deputy dean of the Shanghai Advanced Institute of Finance, said that the valuation of Chinese companies listed in the United States is relatively lower than the valuation in the domestic A-share market or the Hong Kong market. In the second half of 2011, China The company's stock price in the US capital market has plummeted, mainly dragged down by the decline in the US market, on the other hand, it has been questioned by US short-selling agencies on its financial data. "In fact, Chinese companies are listed in the United States, and their stock prices have also fallen before, except that the decline in the previous two years has not been large and has not attracted widespread attention. There are two main types of Chinese companies listed on the US market: one The first category is through IPO, and their financial data is more transparent and true; the other category is listed in the United States through backdoor or reverse acquisition, and these companies perform poorly, and the stock price may fall sooner or later. In 2011, such a large-scale outbreak of Chinese concept stocks was bearish, because in May and June, two Chinese companies listed in the United States were investigated by the SEC to find out their financial fraud and other issues. It has also caught up with the outbreak of the European debt crisis and the US debt crisis. "Zhu Ning pointed out during the analysis. According to relevant information, in 2010, a total of 55 Chinese companies went to the IPO in the United States, 50 of which have been broken, and since 2011, the 10 Chinese stocks that went to the US IPO have all broken except for Qihoo 360. In addition to breaking, some companies have been forced to suspend trading or even be delisted. From March to the present, 18 Chinese companies have been suspended from the Nasdaq or the New York Stock Exchange. Since December 2010, 8 have been listed in the US Of companies were ordered to delist. Regarding these phenomena, Zhu Ning also analyzed that the most important factor is that their financial information is opaque and fails to meet the regulatory standards for listing. As a result, Chinese companies have not innovated, and this phenomenon is inevitable. "For a company to go public, investors value the real demand, the market entry threshold, whether the business model can be established in 10 years, 20 years in the middle and long term, and the ability to resist risks. However, the reality is that most businesses that go to the United States for business The model has not been verified over time. "Zhu Ning said. When to get out of the freezing period is unpredictable On the one hand, the performance of Chinese concept stocks in the U.S. capital market in 2011 was like a cold winter, while on the other hand, the NYSE ’s listing threshold has been lowered to overseas companies in the second half of 2010, but in 2011 It has been three consecutive months that no Chinese company has made an IPO in the US capital market. When will Chinese companies go to the United States to unfreeze their IPOs? When will their stock prices pick up? It is also a market concern. "Many companies go to the United States for listing, not because of good timing or high or low valuation, or to fail to meet the standard for listing on A shares. The US capital market has relaxed the threshold for listing, but now in terms of the general environment, it may not be The good time for Chinese companies to list in the United States, and whether Chinese companies can reproduce the batch of listings in the United States depends on the future direction of the global economy and the degree of recovery of the US economy. "Zhu Ning said. Zhu Ning also said that Chinese concept stocks are collectively bearish in the United States, which is actually a wake-up call. It is an early warning of overseas risks. It is not a bad thing for Chinese concept stocks to encounter a crisis in overseas markets. Of Chinese companies restrain themselves and can better learn about the relevant operations, laws and regulations of the US securities market. The increase in such companies can also improve the integrity of listed companies in the domestic market to a certain extent; on the other hand, mainland companies are familiar with At the same time as the new market regulatory environment and political and cultural environment, it is the right way to make yourself stronger. According to Zhu Ning, the short selling mechanism in the US market is easy to encourage short sellers to dig deep or even exaggerate fraud and violations. In the US securities market, short selling is a legal transaction, and any investor with a securities trading account can do it. You can also go short, and short sellers help to expose the market to accounting fraud and other issues. The market exists for the purpose of making money. The short selling mechanism plays a positive role, which makes the market cleaner and price. More reasonable, the short-selling mechanism of the securities market will encourage various research institutions to conduct honest investigations on listed companies. The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting. fabric sectional couch,Sofa Bed Twin Sleeper,Leather sectional reclining sofa Foshan Shunde Baotian Furniture Co., Ltd. , https://www.baotian.com