Chinese ADR Buyouts in Progress

Stabilization of the Chinese domestic markets has improved prospects for completion of a majority of the ADR buyouts announced this year.

The CSI 300 market cap weighted index of the 300 largest Shanghai/Shenzhen listed stocks has rebounded 16% from its August low and is now unchanged for the year:

CSI300 Chart 102815

The highly speculative Chinext index has rebounded 40% from its August low and is now up 69% for the year.

Chinext Index Chart 102815

The lagging performance of many US listed Chinese stocks leaves the incentive in place for privatization restructuring and relisting on a domestic exchange.  Market volatility did not stop completion of several deals in recent months (e.g. PWRD and CMGE).  A majority of the transactions on this list are likely to close, although some could have their prices reduced:

ADR Buyouts

2 thoughts on “Chinese ADR Buyouts in Progress

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s