Trouble for China's Foreign IPOs

Accounting problems and profit warnings plague new stocks
Photograph by Aaron Tam/AFP/Getty Images

The global appetite for Chinese stocks has encouraged more than 180 Chinese companies to hold initial public offerings on foreign exchanges since 2010. With equity markets in mainland China largely closed to foreign investors, the newly public companies seemed like an ideal way to invest in the China growth story. It hasn’t worked out that way. Many stocks of Chinese companies that went public abroad since 2010 have been plagued by accounting problems and profit warnings that have sent their stocks plunging and poisoned the market for new listings.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.