By registering itself in the United States, Baidu Inc (ADR) (NASDAQ:BIDU) is finding ways to seeking to increase $125 million. However on the other hand resilient investors’ desire for Chinese Internet stocks of China by undermining and persistent apprehensions about accounting indiscretions from Chinese companies.
It is planned that the company Qunar Cayman Islands, which offers online travelling services, would be the biggest U.S. IPO and also be the fourth biggest company in China.
Registered Chinese companies in US In 2011, are hit by numerous research reports and accounting indiscretions producing a trend of delisting encouraging debates among regulators of Washington and Beijing about giving out important documents.
An investment banker in Hong Kong said that: Investors have not completely ignored those issues; they know the other ways of generating money in China. He also mentioned that, “There were opportunities to win, so people would like to invest their again.”
Baidu Inc (ADR) (NASDAQ:BIDU) which is considered the largest company which provides search engines gained the favor of Chinese firm due to which the composite index of Nasdaq is up to 26 percent.
The largest Chinese e-commerce company, Aliababa Group Holding Ltd is trying to take up to $15 billion IPO in the United States.
According to Thomson Reuters in 2010 40 companies were listed in the U .S.in 2011 it fells to 15 and in 2012 only two Chinese companies were registered there. The companies that were delisted in 2011 are due to the reason of reverse –takeover.in this process legally public offerings are made with transparent procedures. Baidu earned $306 million in 2011 through its stake in Qunar.
As Chinese e-commerce is flourishing and targeting the middle class so it is generating more revenue from there and according to Morgan Stanley if the trend remains same the revenue goes beyond $30 billion by 2015. In June 2013 the online customers of Qunar raised to 203.2 million.