More Chinese companies lining up for IPOs in United States

BEIJING - Between 15 and 20 Chinese companies are expected to go public in the United States this year due to higher investor confidence in Chinese companies. The new listings from China will mainly be in the health, high-technology and retail sectors.

China has the third-largest number of companies listed on NYSE Euronext, following the US and Canada. As of November 2013, there were 74 Chinese companies listed on the New York Stock Exchange and nine on a smaller subsidiary exchange established specifically for small-capitalisation companies.

The number of Chinese companies listing in the US had been decreasing due to credibility concerns, with 39 US-listed firms charged with alleged fraud and 44 companies delisted from the US stock market for other violations. IPOs went from 13 in 2011 down to a low of 3 three in 2012. Confidence in Chinese companies has been gradually returning following a number of successful IPOs in 2013.