This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Chinese IPOs Skip U.S.

BEIJING -- Last week saw a head-turning IPO from an up-and-coming Chinese chain of language schools. New Oriental Education & Technology Group (EDU - Get Report) saw shares zip upward by 39% Thursday in its first trading day on the New York Stock Exchange.

One reason, perhaps, for the firm's strong debut is that Chinese IPOs have lately been in short supply, despite American investors' healthy appetite for emerging-market growth stories. New Oriental was the first Chinese IPO to list on the NYSE this year. A second, device-maker Mindray Medical International, last week filed to sell up to $276 million in shares on the NYSE.

But New Oriental Education and Mindray are the exception. The rule among more mainland companies lately is to pass up American exchanges in favor of Hong Kong -- a worrying trend for the NYSE and Nasdaq, which have already missed out on several multibillion-dollar China IPOs this year.

Some Chinese firms looking to go public "really feel the Hong Kong market is just as prestigious and offers competitive liquidity," says Ran Wang, CEO of China eCapital, a Beijing-based investment bank.

Though its corporate governance standards are considered high, rules for the Hong Kong exchange aren't as strict as those in the U.S. under Sarbanes-Oxley. Also in its favor, Hong Kong feels culturally familiar to many mainland executives, and it's been considered a part of China politically since the British handover in 1997.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BIDU $216.90 0.00%
EDU $26.52 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs