Chinese Internet Companies Rush To Debut In U.s.

With two Chinese Web firms landing the brand new York Stock Trade (NYSE) final week and more anticipated to appear, the U.S. money marketplace is probably to determine an IPO boom of Chinese firms in Might.

NetQin Mobile Inc., a Chinese maker of cellular phone Internet safety computer software, created its debut around the NYSE final Thursday, a day right after shares of Renren Inc, one of the most significant social networking organizations in China, surged 28.6 % in their debut around the NYSE.

While in the coming week, China's dating site Jiayuan.com and Phoenix New Media Constrained (Phoenix) are expected to obtain their shares traded on the NYSE.

Phoenix New Media, a subsidiary from the Hong Kong-based Phoenix Satellite Television, runs 3 net sites -- portal world wide web website ifeng.com, 3g.ifeng.com for cell phone end users and v.ifeng.com for video subject material.

Another firms have also demonstrated their intentions to go public around the NYSE in May, which includes Shanghai-based TaoMee Inc., which runs www.61.com, a social-networking internet site for Chinese children, and Shenzhen Xunlei Network Technology Ltd, a video clip and audio file-sharing business partly owned by Google Inc.

Analysts say the successful debut of Youku.com Inc., a web-based video clip web site, and e-commerce firm Dang Dang around the NYSE late previous 12 months may possibly have encouraged more Chinese Net firms to go public inside the U.S.

"Renren is unquestionably the star of this round of Chinese business IPOs in the U.S. marketplace. The company's accomplishment is rooted in the impact from the Internet around the Chinese people's social existence," said Qiu Yanying, an analyst with TX Investment Consulting.

Shanghai businessman Zhu Linjun, 32, explained he spent fifty percent of his day on the internet. "I utilized to invest most time on-line searching news, writing emails and searching for data. Now I am virtually often on the social-networking internet sites," he explained.

Now Zhu chats with his close friends, talks with clientele and associates, learns about the news by means of the 2 top Chinese social networking world wide web web sites: Renren.com and Kaixin001.com.

China has more than 270 million end users of social networking net internet sites, creating a industry well worth a lot more than 2 billion U.S. dollars. The figures are probably to double in two many years, according to statistics with Analysts Global, a foremost consulting company on China's World wide web market place.

However some analysts say the investors should be cautious of bubbles. Their worries have been echoed through the plunge in the stock value of NetQin for the duration of its debut.

The company's stock closed at nine.three U.S. dollars a reveal, down 19 percent from its IPO value of eleven.five U.S. bucks.

"American organizations blew the dot-com bubble ten 12 months in the past. Now it's the Chinese companies," said Zhang Chaoyang, chairman of Sohu.com, a serious Chinese portal internet internet site also detailed around the NYSE.

Deutsche Financial institution analyst Alan Hellawell mentioned the scarcity of NYSE listed Chinese stocks will diminish as a lot more Chinese Net organizations go public in the U.S., lowering IPO rates sooner or later.

But he also mentioned that the market's enthusiasm is justified due to the fact China will be the most significant marketplace with regards to Internet subscribers.

"Also, scores of businesses are demonstrating worthwhile company designs, that's diverse through the 1999-2000 time period whenever a great deal of companies that elevated significant venture capital ended up losing heavily," he additional.