Chinese stock sales have been recorded in the US, despite the threat that they will be removed

Funds raised by Chinese groups in U.S. stock markets rose 440 percent in the early months of 2021, surpassing the threat of necessarily expelling attractive Wall Street valuations.

According to Dealogic data, Chinese companies have achieved a record $ 11 billion this year on the New York Stock Exchange and Nasdaq’s initial public offering, tracking stock sales and issuing convertible bonds.

Among the big lists was the $ 1.4 million IPO made by the e-cigarette manufacturer RLX Technology and a $ 947 million bid from software company Tuya, along with 20 other Chinese teams.

Numerous agreements underscored the attractiveness of Chinese companies to the large U.S. capital markets despite the tensions Between Washington and Beijing.

NYSE this year three leaves due to the alleged links that Chinese state-owned telecommunications companies had with the country’s armies. More may face the same fate in December after US lawmakers pass the law groups that are forcibly removed Beijing has banned U.S. inspectorate inspections for three years.

But bankers and IPO lawyers said U.S. lists still allowed Chinese groups to enter the market with greater depth and capital coverage, even though schools in Hong Kong and mainland China he tried to narrow the gap.

“Implementation [of the delistings law] it’s still the way out, ”said Jason Elder, a partner at law firm Mayer Brown in Hong Kong.

The rise in the lists also reflected China’s economic recovery from the Covid-19 pandemic.

China reported last week record year-on-year GDP growth more than 18 percent in the first quarter, how Beijing’s decision to impose strict blockades a year ago helped the country get out of the pandemic much earlier than its global counterparts.

“China’s economy is expected to grow in 2021. This pair is expected to grow with a very strong group of companies, and of course you have investors who are eager to find ways to invest in those names,” Craig Coben said. Leading global Asia-Pacific capital markets for Bank of America.

While stocks listed in Shanghai and Shenzhen they plateau After achieving world-class performance in 2020, this year the U.S. market has progressed, rising 10 percent from the benchmark S&P 500.

The US market has also benefited worse ratings, The S&P 500’s price-to-earnings ratio stands at 32 times, compared to 19 times the CSI of the Chinese mainland. The Nasdaq Golden Dragon index of Chinese companies listed in the US was trading at about 100 times the negative PE ratio.

This has helped boost IPO valuations and provides a receptive environment for the sale of shares by already listed Chinese companies.

“Investors are focused on growth margins and expectations for profitability here and now,” Coben said, “and will focus on regulatory changes or geopolitical events when they materialize.”