China firms head for US IPOs, not fussed by accounting flap

Chinese companies are flocking to the US IPO market in their biggest numbers since 2010, drawn by soaring valuations for tech start-ups and undeterred by a flare-up in an accounting row between Washington and Beijing, Reuters reported last week.

Some 30 Chinese companies could list in the US this year, according to investment bankers interviewed by Reuters. That includes Inc, China's second-biggest e-commerce firm after Alibaba Group Holding Ltd. It said last month it is seeking to raise US$1.5 billion (HK$11.4 billion), in what may be the second-biggest US IPO by a Chinese company.

The return to US shores comes on the back of renewed investor enthusiasm for China plays, particularly for Internet stocks. The country's online retail market by transaction volume jumped 42% last year to 1.85 trillion yuan (HK$1.37 trillion) and is expected to almost double in size by 2016, according to figures from iResearch.

That has trumped lingering concerns about accounting irregularities and corporate governance issues that have forced many US-listed Chinese firms to be delisted since 2011.

- Reuters News