Apr 20

China Watch Blog has learnt that profit warnings, auditor disputes and delistings involving Chinese mainland companies trading on foreign exchanges are fueling investor distrust, wiping out valuations and poisoning the market for new listings.

The 180 Chinese mainland companies that have gone public in New York, Hong Kong and on other global exchanges since the start of 2010 are trading on average 21 percent below their offer prices, according to data compiled by Bloomberg.

At least six disputes have broken out this year between auditors and Chinese mainland companies listed in Hong Kong. More than a quarter of Chinese mainland companies that went public on the city’s main board in 2010, a record year for volume, have lowered forecasts since they started trading, compared with less than 10 percent of non-Chinese mainland companies that had IPOs there that year.

“Investors have been concerned: Are these companies accurately portraying themselves?” said Kevin Pollack, a fund manager at Paragon Capital LP in New York. “There has absolutely been collateral damage. Unfortunately, having big-name auditors and bankers behind a company doesn’t guarantee it’s free of issues.”

If you think China Watch Blog's information is useful, click on cup of coffee on left hand side and make a small contribution via PayPal

Leave a Reply

Archives

April 2012
S M T W T F S
« Mar   May »
1234567
891011121314
15161718192021
22232425262728
2930  
Custom Search

Other Links

Free Web Directory Including Breaking News Resources, Offer automatic, instant and free directory submissions. Free web directory Directory Free
gardening supplies Shop online at the gardenerscentre for a wide selection of garden and gardening supplies and products at low internet prices and fast home delivery service - gardenerscentre.eu
Media Directory. We are listed under Media Organizations category Newsmedia Directory Hong Kong Directory

Hong Kong Directory - A directory of Hong Kong based and themed web sites

Meta

  • Partner links

  • Rss Feed Tweeter button Facebook button Technorati button Reddit button Myspace button Linkedin button Webonews button Delicious button Digg button Flickr button Stumbleupon button Newsvine button Youtube button