John Fitzgibern from IPOScoop (John Fitzgibbon) said: "they are in pursuit of money. After a period of time, China company in the United States IPO good performance. They found that there is a demand, so the other companies will continue to come"
Renaissance Capital Catherine Smith (Kathleen Smith) said: "investors are willing to throw together with the Chinese screen. If you believe that Chinese can still get a positive GDP growth, it is the new China's biggest opportunity, because in many areas, Chinese market penetration is not saturated"
Although this is still not a "torrent" of the IPO, the scale of Chinese companies' IPO to the United States is already significant, and the future may be even greater.
Over the years in the United States listed Chinese enterprises
There are 11 Chinese companies going to the US this year, but there have been 9 since September. Since the beginning of September, the total number of IPOs in the U.S. stock market has been 44, with Chinese companies accounting for about 20% of the total.
The good news is that the returns of 9 newly listed companies have performed well since November, an increase of 21.9% over the IPO price.
IPO average return
However, not all companies are rewarded in the short term. The IPO price of China's education industry's Four Seasons Education was $ 10, but closed at $ 9.5 on Thursday, a 5% drop from the issue price.
There are a few key points to investing in Chinese companies: With the fierce competition in the Chinese market, the support of large companies can help. For example, the stock price of luxury e-commerce temple has dropped 38% since its listing in September. It is really hard to challenge Alibaba and Jingdong without adequate support.
On Thursday, the focus of the US stock market was China's second-largest mobile search engine Sogou. Sogou IPO issue price of 13 US dollars, in the previously announced issue price range on the line. Sogou sales of 45 million shares in the IPO.
In the field of mobile search, Sogou's main competitor is Baidu. However, Sogou received strong support:TencentHolds about 39% of the company's shares.
For American investors, the appeal of Chinese companies is easy to understand: helping them get into the world's largest consumer market.
Smith also stressed the huge differences between Chinese and U.S. companies regarding IPO. "Many U.S. companies are seeking to hide their value in the non-public markets, while Chinese companies are not, and they are eager to go public."