INSUBCONTINENT EXCLUSIVE:
By Shuli RenA trade war can be fought on many fronts
As China breeds unicorns, they are being asked to stay at home rather than gallop overseas to enrich US investors.
The US pipeline of
Chinese IPOs has been light since President Donald Trump started making noises about tariffs in early March
The only billion-dollar offering is the pending sale by e-commerce site Pinduoduo, for which an American listing makes sense because it
competes directly with Alibaba Group Holding Ltd and JD.com Inc., which already trade there.
Hong Kong, by contrast, has seen a stampede,
including the $3.1 billion IPO by Xiaomi Corp
In the US, 17 Chinese startups filed with the Securities and Exchange Commission since March for a combined deal size of $3 billion; in Hong
The KraneShares CSI China Internet Fund, an ETF that tracks US-listed Chinese technology firms, outperformed the SP 500 by an annualized 5.9
per centage points since its inception in August 2013.
Even this year, Chinese ADRs are doing relatively better than the Hong Kong market:
indicator of which way the policy winds are blowing
would have been $275 million lower in 2017, a shortfall of more than 5 per cent, if carried interest had been excluded.
But Hong Kong
follows international financial reporting standards, or IFRS, which have stricter rules on carried interest
This matters because under IFRS, China Renaissance would have barely broken even in 2017 and would have incurred a $65 million net loss in
the first three months of this year
such as iQiyi Inc, YY Inc
mouthpieces love to say there are no winners in a trade war
There are certainly losers, though.
