Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

China-based companies raised $11.7 billion through U.S. IPOs this year, the most since 2014

China-based companies raised $11.7 billion through U.S. IPOs this year, the most since 2014

Investor appetite for Chinese companies in U.S. stock markets rose to a six-year high in 2020 despite tensions between the two countries.

China-based companies raised $11.7 billion through 30 initial public offerings in the U.S. this year, according to a Dec. 17 report from Renaissance Capital.

That marks the highest amount of capital raised since 2014, when 16 China-based companies raised $25.7 billion, the report said. Alibaba accounted for the bulk of that year’s raise as the biggest IPO to date at the time.


Major Chinese IPOs in the U.S. this year included financial technology company Lufax and online real estate platform Ke, both of which ranked among the ten largest public offerings in America this year, according to Renaissance Capital.

Walmart-invested grocery delivery company Dada, electric vehicle start-ups Xpeng and Li Auto and BlueCity, owner of China’s largest LGBTQ dating app, were among other major listings in New York this year.

Chinese companies’ enthusiasm for U.S. markets came despite a tumultuous year for relations between the world’s two largest economies. In addition to ongoing trade tensions, U.S. President Donald Trump’s administration has sought to keep American capital from investing in Chinese assets.

The coronavirus pandemic has also slowed cross-border business activity and led to an international dispute over whether Covid-19 originated in China as well as how much China is to blame for the pandemic.

Earlier this year, some Chinese businesses delayed their plans for listing in the U.S. amid the pandemic as well as the revelation of an accounting scandal at Luckin Coffee in April. Nasdaq delisted the company this summer, just about a year after the Chinese start-up became the first company since 2000 to achieve a $3 billion valuation in less than 24 months.

Other Chinese companies have fallen dramatically. Since listing on the New York Stock Exchange in January, shares of Phoenix Tree have plunged about 76% due to concerns about the financial health of subsidiary Danke, a residential rental company.

Phoenix Tree is the worst-performing IPO of the year, Renaissance said. Overall, the firm’s analysis found Chinese companies that raised at least $100 million this year have, on average, netted total returns of 81%.

The Renaissance Capital data included Hong Kong-based companies. The analysis excluded unique IPO situations such as listings of special-purpose acquisition companies (SPACs) and best-effort IPOs, as well as deals raising less than $5 million or companies with a market capitalization of less than $50 million.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×