Chinese IPOs piling up as market races higherAaron Pressman
The leading Chinese stock market index has doubled on the year, the iShares FTSE/Xinhua China 25 ETF (Symbol: FXI) is up 90%, one of the best performing initial public offering this year is JA Solar Holdings (JASO) and, surprise, surprise, the line of Chinese companies hoping to debut in the U.S. market is rapidly growing.
Any minute, we’re expecting Noah Education Holdings to go public under the symbol “NED.” Today, Chinese insurer CNINSURE said it plans to sell shares worth up to $150 million and online gaming company Giant Interactive Group wants $800 million. Yesterday, Chinese drug store chain Nepstar filed for its own offering without specifying pricing yet.
All this action makes one nervous, to say the least. Hedge fund manager, Wallstrip founder and mega trend-follower Howard Lindzon issued a simple warning today: Don’t be a hog.