China's Listed Companies In The United States Have Closed The Door.

Over the past two months since March, 18 Chinese listed companies have been suspended by the NASDAQ or the New York stock exchange, and 4 companies have been ordered to withdraw from the market. For a while, Wall Street's China concept stocks were in an awkward position. The industry pointed out that financial failure, performance is not ideal and no mature business model to support, perhaps China's stock market in the United States frequent delisting reasons.

Financial data are too packaged or even fraudulent.

The crisis of China's concept stocks in Wall Street has further escalated. Local time on May 23rd, the New York stock exchange, a listed company in China, said that the securities and Exchange Commission was conducting an investigation into the Southeast financial intermediation. In May 21st, Shanda technology received a notice of delisting from Nasdaq, and announced that it would not accept Shanda technology's application for resumption of trading on the 1 day of April to the NASDAQ listing qualification department.

Since March of this year, the US stock market has experienced a wave of suspension of China's concept stocks. China's high speed channel, AI Tai Ke, Shengda Technology, Shengli dragon, Na Wei Shi, intelligent lighting, Fuqi international and tens of billions of nearly 10 Chinese stocks have been suspended or delisted.

Prior to this, China Internet Corporation is launching a third wave of listing in the United States. From Youku, Dangdang, Mcglaughlin, soufangfang to Renren, netqin, Jiayuan, etc., Chinese companies have gone to the US market to form an upsurge. Statistics from Ching Ke capital show that in 2010, a total of 39 Chinese companies went to the United States, occupying nearly 1/4 of the number of initial offer companies in the US market, and 4 of the top 10 initial companies in the US in 2010. By 2011, the enthusiasm of investors to pursue China's concept stocks continued unabated. Data show that in the first quarter of 2011, the domestic Internet venture capital investment amounted to nearly US $700 million, almost the total amount of Internet investment in 2010.

But even the listed China Internet enterprises Renren, netqin, Jiayuan and other listed companies announced their breakup on the day or shortly before, leaving investors with a big surprise.

A more serious problem than broken hair is that after some Chinese companies have gone to the US, the problems are constantly exposed. Mcglaughlin, the first Chinese B2C e-commerce company to be listed in the US last year, was soon faced with more than 5 group lawsuits from US investors shortly after being listed. He sued Mcglaughlin for the fact that his financial data was too packaged or even fraudulent, resulting in its stock price declining.

No outstanding performance as support

It is reported that nearly 10 Chinese stocks such as China's high-speed channel have been suspended. Delisting The reasons include the failure to meet the requirements of information disclosure, failure to comply with trading rules and financial challenges.

Insiders pointed out that the reason why the US market is famous is mainly due to its strict supervision. Although the threshold of entry to the market can determine whether an enterprise can enter its market, strict supervision measures often determine its life and death. At this point, we still have a big gap. Some companies blindly pursue the listing, but their performance is in the doldrums for a long time. At the same time, they need to maintain a higher listing cost. They are faced with close supervision and examination. The significance of listing has been lost, and they have paid a heavy price after fishing in troubled waters.

Zou Yasheng, vice president of the school of Finance and economics of the University of foreign trade and economic analysis, said: "there are differences in the purpose of listing some enterprises. They are documents issued according to the conditions of listing, which will bring hidden trouble for future work. The financial data can not withstand the test, naturally frequently checked. In addition, some enterprises overemphasize the concept of China, but do not have excellent performance as a support. After the initial stage of listing, once the wind investment fund is withdrawn, the natural performance is plummeted.

At the same time, Zou Yasheng said, worse still, the bad performance of some enterprises in the US capital market may affect. Chinese Enterprises The collective image.

Some foreign media commented that the market reputation accumulated by China's Listed Companies in the past 10 years may have collapsed in the last 3 months.

Hard work and internal strength can return value.

Xie Wen, an Internet veteran, points out that, in fairness, some of the Chinese companies listed in the US in the past year are good companies, and there are some potential companies, because most of these companies have large numbers of users and clear profit models.

Independent commentator Hong Bo pointed out that overheating will always be over. The first one or two financial statements may be better looking. But in the first half of next year, investors will gradually identify the companies with high valuations, and the bubbles will be squeezed out. As a result, irrational stock prices will fall into the abyss, and those really good companies will live as well.

Zou Yasheng said: "partial bubbles will not shake the fundamentals of the US stock market and China's Internet industry. Those overvalued new listed companies will soon be on the road of value return. Chinese enterprises still need to work hard to make good use of their internal strength, and do well in which market they can go public. Rather, they should not aim at getting short-term wind investment, and make solid achievements as a strong support for enterprises to become bigger and stronger.

The 9 issue of Hongkong Ta Kung Pao said that the recent wave of short selling of Chinese stocks in the US capital market needs to be vigilant, which is mainly based on the financial problems of some listed companies. This reflects the integrity problem faced in the process of rapid economic development from one aspect.

In a sound capital market, short selling by investors is a normal thing. It is not worth worrying about. But the recent wave of short selling of Chinese stocks in the US capital market needs to be vigilant. Because unlike the general premise of shorting, short selling of China's concept stocks is more based on the financial problems of listed companies. This reflects the integrity problem faced in the process of rapid economic development from one aspect. {page_break}

China concept stocks are encountering two aspects of "fame and fortune" in Waterloo. Some people blame it on the short selling behavior of American research institutions, such as muddy water company, but according to the normal situation, short selling does not lead to the suspension or delisting of the company itself. The main reason is that some companies have taken some fraudulent practices such as financial fraud in order to maximize their wealth in order to be listed in the US.

Lack of credibility is the "soft rib" of some Chinese companies. Li Changan, an associate professor of public administration at the University of foreign trade and economics, believes that the market economy is a good faith economy. (micro-blog) With the rapid development of the economy, the pace of financing will be faster and faster. For any Chinese company, it is imperative to strengthen the integrity system and set up the thinking mode of "honesty first". The author also wants to emphasize that the market economy itself can not keep people in good faith in economic behavior, and the integrity mechanism of society needs the maintenance and guarantee of the system.