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 [讨论] key comments about IPO of real estate firms from China |
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parisparis
头衔: 海归少将
声望: 讲师
加入时间: 2004/09/04
文章: 1996
海归分: 276207
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作者：parisparis 在 海归商务 发贴, 来自【海归网】 http://www.haiguinet.com
large chinese state owned firms went to NYSE to get external pressure to improve their management. They do not need foreign capital at all. To get listed in US is just a way to spur the lazy management. So these group of firms behaved differently compared with other private firms from China.
For them, cost of capital is not a consideration. Nor is the exchange rate risk.
For private firms, then the cost of capital is definitely important. To go overseas to get expensive foreign capital definitely signals something to the average investors.
I have no bias against firms in certain area. But the Big 4 internal stat/chat with friends will tell you something about the quality of clients in different regions. No personal hard feeling here. Purely cool-minded comments.
As for "corruption" or not, I am raising a very realistic practical issue here. Please consult Big 4 auditors and they will give you professional advices. The heavy gov involvement naturally creates accounting risk (bribery and its book-keeping trouble, and it is not small) here. Heavy bank lending and easy fortune induces the evil side of human nature. The book can be very messy.
I have no idea about Baidu and other IT firms listed in US. But they do not need to get land from gov, which frees them from some temptation and then legal risk.
One technical point I must emphasized here:
Qutoed: overseas is more than U.S., while SOX is only in U.S.
SOX is only for large US companies, not even for OTC firms. Have you noticed that in the original article, it says "OTC BB" market. Section 404 does not applies to foreign issuers and US issuers with market cap lower than 70m. Some other clauses also have its limitation.
But the implicit cost of capital will be higher in OTC due to its lower transparency. I remember Principal An talked briefly about OTC market before. The Henan firm that went public in US actually went to OTC. It did not give a lot of details about the OTC experience.
Frankfurt stock exchange is too small as a stock exchange. It is actually "large" because of its Eurex platform: the largest worldwide futures exchange market. I was interviewed there many years ago. Not a good choice for Chinese firms. HK will be better. London is also a good choice.
BTW, one correction of misperception back in China: IPO is not equal to getting listed on exchanges. Outside China, these two things are totally different and separate.
作者：parisparis 在 海归商务 发贴, 来自【海归网】 http://www.haiguinet.com
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 [讨论] key comments about IPO of real estate firms from China -- parisparis - (2525 Byte) 2006-6-16 周五, 06:34 (1599 reads)
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