Apparently, investors are getting nervous about the number of overseas listed Chinese companies that have been coming under fire for shady accounting practices recently, says Shanghai Daily. Some have been delisted from American exchanges or suspended from trading.
The result is that proceeds from July 2011 IPO offerings are down a whopping 86% from July 2010 proceeds.
30-five companies debuted in the two markets last month, raising a total of 22.74 billion yuan (US$3.53 billion), an annual plunge of 85.56 per cent, China Venture’s report released yesterday said. In contrast, 35 firms raised 36.43 billion yuan in June.
None of those 35 newly public companies chose to list in the United States. 20 of them decided to list on Shenzen’s ChiNext- which deals with small/medium sized operations- and 15 listed in Hong Kong.
And just so you know, Shanghai Daily referred to U.S. fraud allegations as “murky.”