Chinese ADR Buyouts in Progress (Update)

Stabilization of the Chinese domestic markets has improved prospects for completion of a majority of the ADR buyouts announced this year.  Since my last update the Wuxi Pharmaceutical buyout was approved and closed and several deals moved forward with price increases:

The CSI 300 market cap weighted index of the 300 largest Shanghai/Shenzhen listed stocks has rebounded 22% from its August low and is now +2% for the year:

CSI300 Chart 121115

The highly speculative Chinext index has rebounded 50% from its September low and is now up 81% for the year.

Chinext Chart 121115

The lagging performance of many US listed Chinese stocks leaves the incentive in place for privatization restructuring and relisting on a domestic exchange.  The recent resumption of local IPOs seems to have increased the appetite for completion of transactions.  A majority of the deals on this list are likely to close:

ADR Buyouts 121115

 

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