Can Chinese IPOs Break Their Losing Streak?
Barron's April 5, 2019
Silicon Valley’s super-start-ups are teasing investors about whether they will follow Lyft to the public market. Chinese unicorns are less coy. At least eight raised more than $1 billion through initial public offerings in Hong Kong or the U.S. last year, offering a smorgasbord of access to the country’s burgeoning economy.
There’s just one problem: Nearly all of the issues have been dogs. Shares in phone maker Xiaomi (ticker: XIACF) have plunged 45% since a few days after the company’s $4.7 billion IPO. Food-delivery service Meituan Dianping (MPNGF) is off nearly 30% since raising $4.2 billion.