The value of Chinese companies delisting from US exchanges in 2011 exceeded the amount that Chinese companies raised via US initial public offerings in a stark sign of how fraud allegations and slowing growth have made many foreign investors bearish on Chinese groups.
Chinese companies with a combined equity value of $3.5bn were taken private in 2011 by management, strategic buyers and private equity groups, according to data compiled by Roth Capital Partners, a US advisory firm. A further $4.3bn of potential deals remain in progress. In 2010, almost no such deals were completed, according to Roth.
In contrast, US IPOs of Chinese companies raised only $2.2bn, about half the 2010 total, according to Dealogic and Thomson Reuters. No Chinese companies made it to market in the fourth quarter. According to Dealogic, all IPOs on US exchanges raised $41.9bn in 2011, down from $44.5bn in 2010.