(Yicai Global) Nov. 1 -- As American stocks hit new highs, Chinese groups have been vying for spots on the US market in the past two years. Some 18 Chinese companies, five of which are fintech firms, have listed on US stock exchanges this year, National Business Daily reported today.
The Halter USX China Index, which weighs the revised market value and measures the overall performance of Chinese concept stocks listed in the US, had risen 49.42 percent annually by closing on Oct. 27, marking its second largest rise in the past eight years and an increase more than triple the S&P 500 Index's 14.92-percent gain.
Among the index's 59 constituent stocks, 45 (76.3 percent) of them rose this year and 22 (37.3 percent) of them have outperformed the rise in the index over the same period. The prices of 10 (16.9 percent) of them, five of which are tech companies and four of which are consumer services firms, have doubled.
"I think China's fintech companies will usher in a new round of initial public offerings," said Shaun Rein, founder and managing director of CMR Group, a Shanghai-based strategic information firm. "After the financial crisis, the US investors have gone through several cycles for their acceptance for the China concept stocks. Now is the time for the overseas investors to have increasing interest in the growth of Chinese companies."
The Chinese economy's strength drives interest from international investors, and the US stock market's valuation system and an increase in interest from American investors are pushing Chinese companies to have IPOs in the US, Rein said.
Volatility in the share prices of fintech firms may scare off many investors. Fintech companies specializing in cash loans were the subject of regulations this year. Before authorities introduce formal regulatory requirements, US investors will be particularly concerned about China's fintech groups, said Rein.