Economy

Chinese IPO in NYSE back to pre-recession level

(Xinhua)
Updated: 2010-10-02 15:51

NEW YORK - With Friday's debut of China Mingyang Wind Power Group in the New York Stock Exchange (NYSE), the number of Chinese companies got listed this year through initial Public Offering (IPO) in the NYSE has amounted to ten, a level only seen before the economic crisis started in 2008.

The IPO pace of Chinese companies accelerated recently. With three companies issuing their IPO at NYSE in only half a month, the performance of stocks with "China concept" once again caught investors' eyes. China's SouFun Holdings Ltd and Country Style Cooking Restaurant Chain Co have both rallied more than 50 percent since completing initial sales in New York this month.

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As the tenth Chinese company got listed in the NYSE, Mingyang Wind Power Group, the biggest non State-owned wind turbine manufacturer in China, failed to surprise the market with an astonishing debut. However, it still raised about $350 million through the issue, the largest Chinese IPO in US capital market so far this year.

"New York Stock Exchange is the biggest, best and most established capital market in the world. Aiming at building an international capital-raising platform, we believe listing in NYSE accords with our developing strategy," said Zhang Chuanwei, chairman and CEO of Mingyang Wind Power in an interview with Xinhua.

While struggling with a battered financing environment after the economic crisis, only five Chinese companies successfully issued their IPO last year, far less than the level of 18 during its peak year of 2007.

However, with little chance for a double dip in the global economy, the IPO market this year showed a sign of bullishness.

Michael Yang, chief representative of NYSE Beijing Office, told Xinhua that there will be more Chinese companies listed in the NYSE in the fourth quarter, making the total of Chinese IPO to about 15 by the end of the year.

"Since July this year, many Chinese companies have seen their shares surging as investors from both the United States and around the world became more optimistic about China's economy," said Yang. "Even those companies who failed to meet their IPO expectations in the first half of the year recovered significantly recently."