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More Chinese companies choose US as destination to go public

(Xinhua) Updated: 2014-05-20 09:58

"As we came into 2014, you saw a lot more people thinking positively about the IPO market in the United States, and likewise, you saw the same thing in China," Ethridge said. "I think it will obviously depend on whether the IPO windows are there and if you are confident about launching (IPOs)."

So far, there have been seven Chinese companies having listed their shares in the US stock market.

China's e-commerce giant Alibaba Group Holding Ltd. filed its IPO in the United States on May 6. It is expected to be one of the largest stock listings in history.

"So I feel good about the way the market looks right now," Ethridge said.

Ethridge believes that the technology sector is expected to see the most Chinese companies' IPOs this year.

"If we are going to use the past as a harbinger of what we'll see in the future, then you have to say will be technology companies. Most of the companies we've seen from China have been technology-oriented, many of them internet-oriented. And so I would expect the same," he said.

Ethridge said one piece of advice he would give to Chinese companies planning to list stocks in the US market is that "they need to be able to project their result and tell others how they will do in terms of their revenue profitability, and do it with confidence, and then actually beat those numbers."

Ethridge said that US investors welcome Chinese companies " very much" judging from the growing number of China-based companies that went public in the US, their valuation and extraordinary performance after their IPOs.

"For the public investor, to see a country the size of China and that kind of growth rate on top of it is astounding, and I think that is always in the back of their mind," he said. "The question is will the company execute and how do they take advantage of that growth rate."

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