Shaun Rein |
Almost all suspended NASDAQ stocks belong to Chinese firms, Rein notes, and he sets some ground rules:
Another rule to follow is to be wary of firms that list in the US first because they did not qualify to go public on the mainland. Internet and social media companies Ren Ren[RENN 12.60 -0.56 (-4.26%) ], Youku [YOKU 44.49 -4.05 (-8.34%) ] and Dang Dang[DANG 19.95 -1.01 (-4.82%) ] recently listed on the New York Stock Exchange, but would not have been allowed to list on the mainland because they don’t have enough profits. Companies need three years of profits before they can go public on the mainland China exchanges. In the US, you do not need to show profits in order to go public. Most senior executives have told me they would rather list in China if they could because they expect the yuan to appreciate.More in CNBC.
Also be careful of boutique banks, investor relation firms and accounting companies, called middlemen firms, which are responsible for taking companies public and for pumping up stock prices.
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
Related articles
- Taiwan can catch China's luxury market - Shaun Rein (chinaspeakersbureau.info)
- Cardin seeks Chinese buyer - Shaun Rein (chinaherald.net)
- Take care when investing in China - Shaun Rein (chinaherald.net)
- The price tag of anti-Chinese rhetoric in the US - Shaun Rein (chinaherald.net)
- Why yelling in China does not work - Shaun Rein (chinaherald.net)
- Trade under threat of Fukushima fallout - Shaun Rein (chinaherald.net)
No comments:
Post a Comment