Rebound of US-listed Chinese stocks to continue
Updated: 2013-08-21 16:03
NEW YORK -- Chinese stocks traded in the United States have been rebounding over the past several months, boosted by beneficial economic and policy environment.
Analysts believe the China-based stocks will continue the upward trend, which may lead IPO of Chinese companies in the United States out of dark.
China-based stocks rebound
The recent rally of Chinese stocks traded in the US has drawn market attention with e-commerce and real estate sector leading the charge.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the US has jumped about 18 percent from the lowest level in June.
"On average, Nasdaq listed Chinese companies are up 48 percent than this time last year and 20 percent over the last six months," said Frank Giglio, a general manager responsible for business across the Asia-Pacific region at NASDAQ OMX Group.
Giglio pointed out that YY Inc, the recent IPO company, traded over 300 percent above the IPO price, and Nasdaq's largest issuer Baidu.com is up 45 percent over the last six months; Ctrip.com is up over 100 percent on year; Sina Corp and NetEase Inc well over 50 percent.
"That is phenomenal," said Giglio.
Another sector that's making leaps and bounds is the real estate sector. SouFun Holdings Limited and E-House (China) Holdings Limited, respectively, soared 70 percent and 58 percent from their lowest levels in June.
A lot of people are taking a second look at China particularly with the possibility of QE3 tapering soon, which weighed on US stocks, said Managing Director at J.Streicher & Co LLC, Mark Otto, who has years' experience in trading Chinese stocks.
Otto said that "one thing that I do find encouraging is that we are starting to see it's spreading out to other sectors, and it seems like the risk-on is back for China."