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| Shaun Rein |
"It makes sense for Xunlei to postpone their IPO because it is doubtful they would have received a warm welcome," said Shaun Rein, founder and managing director of the China Market Research Group, a strategic market intelligence firm in Shanghai.More in the China Daily
Rein added it is "a terrible time" for Chinese companies to list on the US stock market after a number of accounting scandals have damaged the credibility of US-listed Chinese companies.
Xunlei, which booked $47 million in sales over the last 12 months, planned to list on the Nasdaq under the symbol XNET and has JPMorgan and Deutsche Securities as the lead underwriters on the deal.
Xunlei hoped to raise $114 million by offering 7.6 million American Depositary Shares (ADS) in a price range between $14 and $16...
Short sellers such as Muddy Waters Research have accused Chinese companies such as US-listed Sino-Forest, the Hong Kong-based operator of tree plantations, and Spreadtrum, the Shanghai-based chip designer, of fraud, although both companies' shares have rebounded from their lows in recent weeks.
Last week, rating agency Moody's Investor Service raised warnings about accounting and corporate governance risks at more than 40 China-based companies. "Sentiment is against Chinese Internet stocks right now. Aside from fears about reverse mergers, there are fears of volatility," Rein said.
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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