Thursday 6 November 2008

NYSE Chief Invites Chinese IPOs in 2009

The head of the New York exchange assured Chinese firms that the coming year holds promise, despite a U.S. recession.

1 comment:

Guanyu said...

NYSE Chief Invites Chinese IPOs in 2009

The head of the New York exchange assured Chinese firms that the coming year holds promise, despite a U.S. recession.

By Xiao Qiaohui, Caijing Magazine
5 November 2008

Chinese companies are being invited to launch initial public offerings on the New York Stock Exchange in 2009 despite uncertainty surrounding the depth of a U.S. recession, NYSE Euronext CEO Duncan Niederauer said during a Beijing visit.

Chinese companies that plan to seek financing should hold off until the market stabilizes, Niederauer told Chinese journalists. Yet he said 2009 will offer many opportunities, even though the timing of the market’s revival can’t be predicted.

Moreover, Niederauer said, current share prices do not reflect market fundamentals.

Historical data suggests the stock market will begin bouncing back three to six months before a mainstream economic recovery in the United States. So if the stock market emerges from the shadows in 2009, it would signal that the recession’s worst period may be over and Main Street may be ready to recover.

Niederauer also visited China to sign an agreement with the Dalian Commodity Exchange. The two markets pledged to strengthen collaboration in training, technology, research and development.

The Dalian exchange’s general manager, Liu Xingqiang, told Caijing that he advocates more interaction among derivatives markets around the world, despite questions raised after these investment instruments played a role in the ongoing financial crisis.