Sina, one of China’s Internet conglomerates, is considering delisting from the Nasdaq Stock Market. The company, which went public in the US in 2000, could now be worth $2.7 billion as a result of a take-private offer from New Wave, an entity helmed by Sina’s CEO, Charles Chao. This move would likely see Sina re-enlist at a much higher valuation in Hong Kong or Mainland China — a trend which is growing among its listed contemporaries in the US.
The Jing Take
As we enter the worst period of US-China relations in recent history, Chinese companies’ shares on the Nasdaq are soaring. On the plus side, it has been estimated that a calling back of previously US-listed companies would yield almost $600 billion to China. But, legislation passed by the US Senate recently prohibits trading by any company that goes three consecutive years without inspection from the Public Company Accounting Oversight Board; China is unlikely to comply. While many entities have been privy to undervaluation in the US for years, this move could hamper companies seeking world capital. Given current tensions, this reverse globalization and pull to IPO domestically is expected to continue, drawing it’s prized tech companies back home to China.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.