×

China's Presence Growing in US IPO Market

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Good evening, I'm Saijal Patel from CNBC and you're watching “Asia Market Daily”.

If you had of bought into Baidu's U.S. listing in 2005 - you'd be sitting on a 300 percent return today.

Now, investors are getting another chance at betting on China's internet and tech boom.

A number of Chinese companies are listing American Depository Shares this week.

CNBC's Herb Greenberg has more.

(Package starts)

This is expected to be a big week for Chinese IPO, a handful or so are expected this week alone, with more to come by year end.

Among them, Youku.com - which is a combo of YouTube, Hulu and Netflix. Now what I thought was interesting about this one: Its private investors which came in through private placements include U.S. Hedge funds such as Farralon, and Maverick and Sutter Hill. Also in there the VC firm, Brookside Capital.

Also getting buzz, a company called e-commerce China Dangdang, which is billed as a Chinese Amazon.com.

And then there is Lentuo International, a company that's making money, but whose business is really just six car dealerships in China.

Plus - there are several companies backed by sequoia ventures, which is a big silicon valley VC firm.

But beware, these deals are coming after a few horrible weeks for China stocks that trade in the united states.

Last week, Rino International, which makes pollution control equipment, was de-listed after it failed to answer the Nasdaq's questions about fraud allegations.

And CNinsure, which is a Chinese insurance company. It lost 30% of its value, after a research firm questioned its accounting.

There are quite a few more that have been humbled after having tumbled.

And this tip: Just because companies about to go public have big investors or backers is not a seal of approval. To many of them, this is their exit strategy. Back to you.

(Package ends)

Despite the recent gloomy results, analysts predict Chinese firms are going to be a real driver in the U.S. IPO market.

(SOT) Belinda Allen, Investment Markets Research Analyst at Colonial First State Global Asset Management:

“I think it's just once again a sign of just the growing dominance of the Chinese economy, taking over from Japan earlier this year as the world's number 2 economy, just the growing investment strength that we've seen in Chinese companies and also the growing foreign investment we've seen globally as well. I think that's another sign that the Chinese companies are looking to move offshore and by listing on the U.S. is another example of one way that they can do that.”

Thanks for watching “Asia Market Daily”.

I'm Saijal Patel from CNBC.

All Rights Reserved. A Division of NBC Universal.