GEO Investing

Shares of nearly all the U.S. listed China companies (ChinaHybrids) that have received non-binding going private offers since last year as well as those that have reached definitive agreements to go private are down sharply this morning.  After some digging we think we know why. Our on the ground team in China reported that news has been released in China that the major U.S. news wires or popular social media outlets like Twitter have not yet disseminated.

According to a news report from Tencent Finance, there is rumor that the China Securities Regulatory Commission (CSRC) will postpone the relisting of the ChinaHybrids that have already gone private or plan to go private. Specifically the article rumored that a relisting in China through buying a shell company, a restructuring process or IPO might be restrained.

Shares of Momo Inc. (NMS:MOMO), YY Inc. (NMS:YY),  E-Commerce China Dangdang Inc. (NYSE:DANG), 21Vianet Group Inc. (NMS:VNET) and AirMedia Group Inc (NMS:AMCN) among others are being impacted by this rumor.

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