Many Chinese enterprises land in US capital market in 2014

Year 2014 must be a memorable year for U.S.-listed Chinese enterprises with so many of them landing in U.S. capital market.

Tarena International, the provider of IT education, opened up the first Chinese IPO priced in the U.S. Exchanges. Then there had been eight tycoons such as medical center iKang Healthcare, Twitter-like microblogging service Weibo Corp, e-commerce company JD.com Inc, online cosmetics retailer Jumei etc. successfully listed in U.S. market.

Internet-based firms seem more interested in catching this boom for U.S. investors favoring emerging businesses. In recent years, companies like Facebook and Twitter do have good performances at U.S. stocks.

U.S. stockholders prefer to invest in technology companies while bricks-and-mortars do well in Hong Kong capital markets, Sun Qiang, manager of Warburg Pincus told Xinhuanet in an interview.

The American market has the tradition of attracting new businesses, where such kind of enterprises are easily accepted and recognized by investors. As a leading innovative exchange, Nasdaq enjoys great advantages of convenience and capacity to accommodate, said Zhao Xijun, deputy director of Financial and Securities Research Institute with Renmin University of China.

On the macro economy level, Zhao added that the recovery of U.S. economy and pickup in capital market are also important factors contributing to the year's IPO craze.

Moreover, the U.S. market affords firms options not available in Hong Kong, such as dual-class structures and the ability to list without having turned a profit. It also offers far more liquidity than Chinese mainland IPO market.

China's e-commerce giant Alibaba Group Holding Ltd. also filed its IPO documents recently, planning to raise 1 billion dollars, though analysts predicted the company could fund around 15 to 20 billion dollars and surpass JD.com's record to become the largest IPO made by a Chinese company.

In fact, since the start of 2014, strong performance of U.S. technology stocks has started to fade, lots of tech firms including China-based ones experienced the spring chill, causing investors to be more cautious than ever.

Recent Chinese IPOs are performing poorly, Tarena International is trading 6 percent below its IPO price. iKang Healthcare, priced at the high end of the range and is now trading below its IPO price, according to a report of a securities agency.

Some market participants worry that the IPO of two huge "gold suction" Alibaba and JD.com marking the peak of U.S.-listed boom will cause overdrafts of investment demand.

However, financing volume of U.S. stock accounted for more than 40 percent of the total global scale by the end of 2013. There are a great number of shares and trading products on the NYSE and NASDAQ. Due to the total market volume and strong liquidity, one or two listed companies are unlikely to form overdraft, Sun analyzed.

In addition, a number of U.S. investment banks recently raised ratings of China-related corporations. Ever slumped U.S. listed Chinese stocks see a greater "buying opportunity". In terms of the growth potential and long-term prospects, some shares are still worth buying, Morgan Stanley analysts pointed out in the latest research report.

As well as the rise and fall of the IPO market, Chinese firms are looking to list in the U.S. while investors are looking to get a slice of the pie.