Earlier this year when we first started talking about putting together a snapshot of Chinese companies listed on the Nasdaq and NYSE, the picture was a lot different. Looking to raise capital and sometimes also to cultivate a more international image, dozens of Chinese companies were making plans for IPOs on the US exchanges this year, and some of those offerings debuted with a bang – for example anti-virus software provider Qihoo 360 debuted on the Nasdaq at the end of March with an IPO priced at USD 14.50 a share which climbed as high as USD 33.40 per share during its first day of trading. Soon other Chinese Internet stocks began rising – online video firm Youku saw its stock price rise 22.5% between April 8 and April 14, Sina jumped 16% between April 1 and April 15, and Baidu grew 20.1% between March 15 and April 15.
　　
　　But then suddenly the bloom was off the rose – and Chinese company stocks seemed almost radioactive. Some analysts attribute the fast shift to a series of negative reports about Chinese companies who listed through reverse mergers rather than the traditional IPO process – which seems to have caused investors to pause when considering all Chinese companies, regardless of their financial health. Others say that in some sectors, such as the Internet, it is just an overdue market correction.
　　
　　Whatever the reason, the trend for Chinese companies to list in the US is sure to continue, and there are many healthy Chinese companies who have already listed whose stocks are worth having in a well-diversified portfolio.