March 16, 2012 (Chinavestor) Couple of interesting facts about Chinese stocks. Home market is Shanghai, not Hong Kong, for Chinese stocks. The Shanghai Stock Exchange is the 5th largest in the world after London and the second largest in Asia. Despite its relatively short history, the stock exchange re-opened in 1990 after the Communist shut it down after 1949, there are 2342 listings in Shanghai as of March 2012. Shanghai has been the largest IPO market in the world for four years in a row. The largest IPO ever is also a Chinese listing, Agricultural Bank of China raised $22.1 billion in 2010.
But Hong Kong is a key market for Chinese stocks and western investors. There are only 171 mainland Chinese companies listed in Hong Kong (not including red chips) yet they make up 55.5% of the total market cap of all Hong Kong listings. This gives that Hong Kong is a top favorite destination for large, quality Chinese companies. The first Chinese listing in Hong Kong was Tsingtao Beer, the largest beer maker in China, in 1993.
The U.S. attracted a larger number of Chinese companies than Hong Kong. There are 188 Chinese ADRs listed on the NYSE and NASDAQ combined with 8 IPOs in 2011. But their market cap is just half of Hong Kong's Chinese listings and make up a mere 4.1% of total market cap of U.S. stocks. The first Chinese company to get listed in the U.S. was China Brilliance Auto under the ticker CBA but was delisted after Sarbanes-Oxley and lack of investors interest. Sina Corp. (NASDAQ:SINA) was the first Chinese company listed on the NASDAQ, a company that is still very active and is dubbed by many as China's Yahoo.