Chinese ADR Buyouts in Progress (Update)

Many pending buyouts progressed towards completion despite recent equity market volatility.  Since my last update:

and several new deals were announced:

Recent market weakness may delay or disrupt completion of pending buyouts.  The CSI 300 market cap weighted index of the 300 largest Shanghai/Shenzhen listed stocks dropped 22% from its December high and nearly touched its August low:

CSI 300 012216

The highly speculative Chinext index fell 30% from its December high:

ChiNext 012216

The 20% fall in internationally listed Chinese companies represented by the S&P China Broad Market Index  left the onshore vs offshore valuation gap largely unchanged and a strong incentive remains for privatization restructuring and relisting on a domestic exchange.  A few recent developments to consider:

Considering these factors, a majority of the currently pending deals are likely to close:

ADR Buyouts 012216

 

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