2018 IPO Listings: Chinese IPOs near record US listings despite trade tension
Updated 10:15, 28-Dec-2018
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The China-US trade dispute has done little to scare off Chinese companies listing on American stock exchanges. 2018 is not far off from being a record year for Chinese IPOs, nearing the previous high of 39 U.S. listings in 2010. And there are predictions that 2019 could be even stronger. CGTN's Nick Harper in New York looks back on the bumper year for Chinese listings.
The biggest Chinese company to go public stateside in 2018 was video streaming company iQiyi in March. Followed by social shopping app Pinduoduo in July. And music streaming site Tencent Music made some noise with its December initial public offering. But they're just some of dozens Chinese companies that have gone public in the U.S. in 2018. Boustead Securities helps lower-middle market companies and is completing four Chinese IPOs in December alone.
DANIEL McCLORY MANAGING DIRECTOR, BOUSTEAD SECURITIES "China has an export that very few people have sat up and noticed and that's their IPOs. China is leading the world in exporting its IPOs."
And McClory believes that growth is set to continue.
DANIEL McCLORY MANAGING DIRECTOR, BOUSTEAD SECURITIES "It's literally doubled year over year. And the pipeline for 2019 is also incredible. There's already 40 companies in that pipeline and we've got about 25% market share of that pipeline."
NICK HARPER NEW YORK "U.S.-China trade tensions persist but with Chinese investors continuing to back IPOs on the world's two largest exchanges, the New York Stock Exchange and the NASDAQ, there appears to be little slowdown in Chinese companies looking to list."
For U.S. firms, 2019 could be the year of the unicorn - startups that have reached the maturity of a $1 billion dollar valuation. Leading the pack, Uber and Lyft are racing to see who can list first.
MAX WOLFF CHIEF ECONOMIST, THE PHOENIX GROUP "The markets will have a certain amount of appetite for say a ride-hailing app and if you're second then a bunch of that appetite has been satiated already in the market."
Pinterest and Airbnb may also open their doors to the public next year. And with more Chinese companies lined up for U.S. listings, records could be broken. Nick Harper CGTN, New York.