Some companies have to seek new financing channels to get funded, said a manager in charge of credit with a Chinese joint-stock bank.
However, some analysts have warned that a stock market bubble is being created and last week former Federal Reserve chairman Alan Greenspan warned that the Chinese stock market could undergo a dramatic correction.
Direct investors in the Chinese stock market still take a rather grim view of corporate futures there.
If the U.S. parent sells stock in a non-Chinese holding company that owns the Chinese company, generally the gain should not be subject to Chinese taxation.
Like I said, a stock like GMCR, a stock like Apple, a stock like Jiayuan.com ( DATE), which is a new Chinese IPO.
DangDang, another Chinese stock that had its IPO on the New York Stock Exchange today, also saw its shares rise a bubble-like 87% today.
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But only a small proportion of Chinese companies are listed on the stock exchange and those that are rely mainly on internal finance.
The Chinese company is now traded on a U.S. stock exchange and usually files soon thereafter to issue more shares to raise capital for the company.
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Robert Stammers, Director of Investor Education at the CFA said that while Baidu represented the potential for opportunities in the global market, investors should not expect to earn a great rate of return by simply choosing investments with high historical returns like Baidu or choosing the stock as a means to participate in the Chinese economy.
The stock market has also been a boon to many Chinese companies, which have jumped into the business of building everything from solar wafers to finished panels.
The Morgan Stanley China A Share Fund (NYSE: CAF) invests at least 80% of its assets in A-shares of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges.
The creation of the Chinese stock market in the early 1990s, however, served a different purpose: to recapitalize and restructure large state-owned enterprises (SOEs) that otherwise would have gone under.
Chinese companies have been having a tough year in the U.S. stock markets.
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China securities regulators have compiled a list of 10 companies that will be allowed to list shares on the pending international board of the Shanghai Stock Exchange, according to an article in a leading Chinese business newspaper on Friday.
One of the most popularly reported fraud cases involving a Chinese company was timberland firm Sino-Forest, traded on the Toronto Stock Exchange.
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If our first and second predictions are correct, and China enters a period of stable, sustainable, low inflationary growth in 2011, then Chinese stock prices should react favorably.
In one case, a U.S. company sold stock in a Hong Kong company that owned a 49% interest in a Chinese joint venture.
The Chinese stock market typically moves in tandem with industrial-production growth, says Tony Welch, a global analyst at Ned Davis Research.
Toyou Feiji Electronics, a software company whose customers include Chinese web giant Sina, today held on to a 29% rise in its shares yesterday after its stock debuted at the Shenzhen Stock Exchange.
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It was packed with Canadian companies in search of capital either through a direct listing (difficult, given profitability requirements at the Hong Kong stock exchange) or a partial investment by a cash-laden, resource-hungry Chinese firm.
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