China's concept shares Shine America: Regain investor Trust

Lead: Reuters published in Friday, "IPO market Prosperity: China technology Companies Shine America" (Chinese tech companies shine in U.S debut as IPO harsh booms) commented that although the IPO (IPOs) The market once stalled over accounting and corporate governance scandals, but as the market recovers, and with the endorsement of top investment banks, Chinese technology companies are starting to regain the trust of US investors.

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Investor confidence Recovery

The 500 Lottery network and 3G portal parent company, a Chinese technology company that has been courted by top investment banks, rose in Friday on the day the U.S. stock market went public.

The series of accounting scandals over the past few years has stalled the process of listing Chinese companies in the US, from 40 in 2010 to 0 in 2011. However, the recent interest in American investors in Chinese companies seems to be gradually recovering.

"Investors would be much more interested if they were introduced by top investment banks." "Francis Gass (Francis gaskins), ipodesktop.com partner of the U.S. IPO research company, said.

Deutsche Bank acted as the chief underwriter of the 500 Lottery network, while Credit Suisse and JPMorgan Chase, the chief underwriter of the state digital. 7 Chinese companies have been listed in the U.S. this year, with only 2 in 2012.

Over the past few years, two Chinese companies in China's high-speed channel, the timber company, the Sino-Forestry and outdoor advertising agency, have been forced to retreat in the US because of accounting and corporate governance scandals. Recently, the United States shorting institutions muddy water and criticized the China Mobile software company Network Qin existence "significant fraud."

The 500 lottery net rose as much as 70% to $22 in the NYSE on the day of Friday, with a market capitalisation of more than 700 million dollars. State digital shares rose as much as 44% on the day to 16.14 U.S. dollars, worth more than 520 million U.S. dollars.

IPO market boom

The first day of the 500 lottery and state digital highlights the recovery in the US IPO market, the strongest recovery since 2007.

Economic growth and the continued low rate of Fed interest rates have boosted the stock market's rally, making the U.S. IPO circulation more than 2012 years old this year.

But some fund managers remain cautious. "We have returned to the glass ' half full ' environment, no longer the ' half-empty ' environment. "If you're a regular investor, you might want to keep a little more cautious," said Jim Chanos, president and founder of Kynikos Associates, the US investment firm, at the Reuters Global Investment Outlook summit in Tuesday. ”

Analysts have said that some of the best-known companies listed this year appear to be overvalued, such as Twitter, the Star enterprise of the social media industry.

But investors are not ready to let go. Some 8 companies have doubled their share prices on the first day of the IPO, and many have also achieved their first-day rally.

Technology IPO Popular

Most of the Chinese companies that have come out of the IPO this year are from the technology industry, suggesting they are benefiting from the emphasis on the technology sector from US investors. Before Friday, where to go and 58 of the same city and other Chinese technology companies also listed in the United States.

Shenzhen's 500 Lottery network is one of China's top lottery operators, which financed about $75 million through IPOs, initially offering 9 to 11 U.S. dollars, then up to 11 to 13, and eventually to a 13-dollar range cap.

The 500 Lottery network is one of two online lottery sales service providers accredited by the Chinese government. China's lottery market has grown rapidly over the past few years.

IPO documents show that the 500 Lottery network in the 9 months ended September 30 to achieve net profit of 3.36 million U.S. dollars, year-on-year growth of nearly twice times. From the end of 2010 to September 30 this year, the total number of users in the company also doubled, to 18.4 million.

China's 2013-year total lottery sales are expected to grow by 18% to 308 billion yuan (about $50.54 billion trillion), the company said, citing data from Eric Consulting. 500 Lottery Network CEO Rozhao holds 20% of the company's stake, the venture capital company Sequoia Capital shareholding ratio of 14%.

The state digital share price range is 9.50 to 11.50 U.S. dollars, eventually issued at a price of 11.22 U.S. dollars, the company sold a total of 7 million ads (the United States Depository shares). State Digital in the 9 months ended September 30 to achieve profit of nearly 10 million U.S. dollars, to achieve revenue of about 37.58 million U.S. dollars.