Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24
Banxe Reviews: Revolutionising Financial Transactions with Innovative Solutions - 3rd May 24
MRNA - The beginning of the end of cancer? - 3rd May 24
The Future of Gaming: What's Coming Next? - 3rd May 24
What is A Split Capital Investment Trust? - 3rd May 24
AI Tech Stocks Earnings Season Stock Market Correction Opportunities - 29th Apr 24
The Federal Reserve's $34.5 Trillion Problem - 29th Apr 24
Inflation Still Runs Hot, Gold and Silver Prices Stabilize - 29th Apr 24
GOLD, OIL and WHEAT STOCKS - 29th Apr 24
Is Bitcoin Still an Asymmetric Opportunity? - 29th Apr 24
AI Tech Stocks Earnings Season Opportunities - 28th Apr 24
S&P Stock Market Detailed Trend Forecast Into End 2024 - 25th Apr 24
US Presidential Election Year Equity Performance in the Presence of an Inverted Yield Curve- 25th Apr 24
Stock Market "Bullish Buzz" Reaches Highest Level in 53 Years - 25th Apr 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Smoking Hot China IPOs

Companies / China Stocks Dec 16, 2010 - 07:40 AM GMT

By: Tony_Sagami


Best Financial Markets Analysis ArticleWhat do you end up with when you combine “China” and the “internet?” You get a smoking-hot IPO. For example, Chinese search engine (BIDU), the Google of China, is up by 160% so far this year.

A total of 35 Chinese companies have gone public in the United States this year, raising $2.2 billion and creating a windfall of gigantic profits for many investors.

A couple of real humdingers went public last week and skyrocketed in value. I’m talking about (YOKU) and E-Commerce China Dangdang (DANG), both of which had spectacular debuts.

  • soared by 160% on its first day of trading and up another 16% on day two, which boosted its market capitalization to $3.3 billion. That first day moon shot was the best first day performance of any IPO in five years.
  • China Dangdang jumped by 87% on its first day. Dangdang was heavily purchased by 500 institutional investors, a huge number for a $272 million IPO that would normally attract 50 or 100 buyers. Dangdang’s stock was bought by funds from the Middle East, Asia and Europe as well as the United States.

Don’t feel bad if you’ve never heard of and E-Commerce China Dangdang. Very few U.S. investors have.

Youku is an online video company that is essentially the YouTube of China. Youku has yet to make a profit, but its revenues — up by 135% in the first nine months of 2010 — are growing like mad, and it is WILDY popular with Chinese youths.

Youku CEO Interview If you want to learn more about, click here to watch this interview with CEO Victor Koo.

E-commerce remains a fledgling industry in China because few Chinese own credit cards, but Dangdang is expected to become the of China and become one of the country’s largest online retailers.

But Wait, There’s More

Those weren’t the only Chinese IPOs last week. Also going public were Sky-Mobi (MOBI), China’s largest mobile application store; Lentuo (LAS), the largest privately owned car retailer in Beijing; Bona Film Group (BONA), the largest non-government owned movie producer in China; and China Shengda (CPGI), a China-based manufacturer of paper packaging.

Get this: According to Ernst & Young, a whopping 46% of the world’s IPO sales have come from the greater China region — mainland China, Hong Kong, and Taiwan — in 2010.

This factoid may surprise you: There are more than 300 Chinese stocks traded on a U.S. stock exchange. Yup, you can get about as much Chinese exposure as you want without leaving the shores or comfort of your current U.S. broker with these American Depositary Receipts (ADRs).

For example, internet portal (SINA) is the largest internet advertiser in China and is trading for a very reasonable 11 times earnings. A lot of investors consider that a bargain since it owns/operates Weibo, the Twitter of China, and has $1 BILLION of cash sitting in the bank.

Two other Chinese internet portals, (SOHU) and (NTES) are trading for 23 and 16 times earnings, respectively.

Tony Sagami

A great starting point for following Chinese ADRs is a new index, the BNY Mellon China Xia Yi Dai Index, is a new index that you may want to follow. This is an index of Chinese stocks listed on a U.S. exchange with a market capitalization of at least $100 million. This is essentially an index of the bluest blue chip Chinese stocks available to U.S. investors on the NYSE and Nasdaq.

By the way, three more Chinese companies are prepping to go public in the United States in the near future: Redbaby, Oak Pacific Interactive, and Uni-Power Guaranty.

Oak Pacific Interactive, in particular, should be a big winner. The company operates Renren, the most popular social networking site in China and is accurately referred to as the “Facebook of China.”

Not only is the social networking market bigger in China, Renren has the advantage that the Chinese government has forbidden Facebook to operate in China effectively giving Renren a government-sponsored monopoly.

Oak Pacific Interactive also owns Nuomi, a Chinese Groupon clone.

Oak Pacific Interactive has hired Credit Suisse to underwrite its IPO, and is expected to go public in the U.S. in early 2011.

If you want to stay abreast of these hot Asian IPOs. I suggest that you follow my blog at and my Twitter page at!/tony_sagami where I post notices about new Asian IPOs as well as news items that can help you identify new investment ideas.

My blog and Twitter readers were notified about Dangdang and and may be smoking big victory cigars paid with the fast profits they made on those two stocks.

IPOs, whether Chinese or American, can be volatile and are therefore only appropriate for investors willing to accept a higher amount of risk. They can, however, be extremely lucrative and some of the fastest profits you will ever make.

Chinese IPOs are the hottest of them all and are at least worth your attention if not your money.

Best wishes,


This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in