Deals
Investors Shun Chinese IPOs as Auditor Disputes Undermine Values
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Profit warnings, auditor disputes and delistings involving Chinese companies trading on foreign exchanges are fueling investor distrust, wiping out valuations and poisoning the market for new listings.
The 180 Chinese firms that went public in New York, Hong Kong and on other global exchanges since the start of 2010 are trading on average 21 percent below their offer prices, according to data compiled by Bloomberg. The MSCI World Index has gained 10 percent in the same period, while the 407 initial public offerings in the U.S. since the beginning of that year have advanced on average 4.4 percent.