Chinese Companies Sees Increase in Shares after Debuting on the U.S. Market
After debuting on the US stock market two Chinese internet stocks saw their shares rises in turn reaffirming its overseas investors desire for Chinese stock even with a high profile spat with US listed Chinese companies and its short sellers. Online travel website Qunar which is majority owned by Baidu seen its share prices doubled in the first day of trading on Nasdaq while shares of 58.com have increase more than 45 percent after going public o the New York Stock Exchange.
The two Chinese internet stocks strong performances were far from the dismal performance of NQ Mobile whose shares went down as much as 50 percent after Muddy Waters accused the mobile security software company of lying which sparked a round of sell offs from US listed Chinese companies also known as Chinese concept stocks which made Chinese internet stocks the biggest casualty of the sell offs.
Meanwhile on the bright side investors confidence on the booming internet sector of China pushed the shares of 58.com and Qunar and NQ Mobile was able to recover a little after the company refuted the accusations thrown to them. This only shows that Chinese tech companies are now making a comeback on the US market since most of these firms are being backed by foreign investors and by going public in the US will make it easier for them to cash out.
58.com is the biggest online classified ads distributor in China which is similar to Craigslist which gives small offline vendors a wider online exposure to its customers. The website makes its revenue by charging memberships fees and priority placements while Qunar.com is the most visited travel website in China.