Interestingly China is simultaneously seeing problems in its tech IPO listings. The private equity market has massively overvalued the companies and now they can't properly exit by IPO at the formerly anticipated valuations.
"Two-thirds of the 21 tech IPOs in the past year are below their issue price, with shares down an average of about 20 percent through Friday. Leading the wipe out are online financing platforms Qudian Inc. and PPDai Group Inc., which plummeted 55 percent and 48 percent respectively, while search engine Sogou Inc. has tanked 27 percent."
"The extraordinary surge in private valuations that has seen China sprout 164 companies worth at least $1 billion now presents a challenge in public markets."
"Two-thirds of the 21 tech IPOs in the past year are below their issue price, with shares down an average of about 20 percent through Friday. Leading the wipe out are online financing platforms Qudian Inc. and PPDai Group Inc., which plummeted 55 percent and 48 percent respectively, while search engine Sogou Inc. has tanked 27 percent."
"The extraordinary surge in private valuations that has seen China sprout 164 companies worth at least $1 billion now presents a challenge in public markets."
https://www.bloomberg.com/news/articles/2018-05-14/strugglin...