Performance of Recent Chinese IPO Stocks
In the past year, thirteen Chinese companies located in the mainland China offer their shares to the public and traded their stocks in the US. The following is a table showing their performance as of today.
|Company||Symbol||IPO date||IPO price||Current price|
|New Oriental Education||EDU||09/06/06||$15.00||$49.90|
|Mindray Medical Intl.||MR||09/25/06||$13.50||$23.79|
|Home Inns & Hotels||HMIN||10/25/06||$13.80||$32.60|
|Canadian Solar Inc.||CSIQ||11/08/06||$15.00||$10.16|
|Trina Solar Limited||TSL||12/18/06||$18.50||$55.15|
|Solarfun Power Holdings||SOLF||12/20/06||$12.50||$14.36|
|JA Solar Holdings||JASO||02/06/07||$15.00||$24.70|
|Xinhua Finance Media Ltd.||XFML||03/08/07||$13.00||$12|
|Qiao Xing Mobile Comm.||QXM||05/02/07||$12.00||$10.6|
The biggest winner so far is New Oriental Education (EDU) with more than 230% gain. Actually, I am not surprised by how well EDU has been doing since its IPO. EDU’s main business is test preparation. As tens of thousands of Chinese students taking foreign language tests (such as TOEFL and GRE) every year, EDU has enjoyed tremandous growth since it was founded in 1993. I had some personal experience with EDU in the early 1990′s when I was preparing to take TOEFL and GRE. At that time, EDU was more like a evening school renting classrooms from local universities to offer test preparation courses. Every classroom was packed with more than two hundreds students and teachers had to use loud speaker so students in the last row could hear them. The condition was tough, but they built a good reputation among Chinese students who want to pursue further education in countries like US, UK, and Australia, with US being the biggest destination. If you go to any university in US and ask a Chinese student about EDU, chances are he/she not only knows it, but also is a student of EDU.
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Because of my one-time success with a Chinese IPO stock (LFC that is), I have kept an eye on all Chinese stocks that chose to listed their shares here in the US. I could have got EDU around $20 on its IPO day on secondary market, but didn’t participate. Currently, the Chinese stocks I own are LFC, XFML and GRRF.
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