Wall Street’s Appeal for Chinese Companies Seems to be Waning

Wall Street’s appeal for Chinese companies seems to be waning, with a sharp rise in the number of firms planning to delist from the U.S., despite the turmoil in the Shanghai stock market.

So far, 24 U.S.-listed Chinese companies have announced plans to go private this year, with 15 of these reported in June alone, according to financial software provider Dealogic.  In comparison, only one Chinese company delisted in 2014.

The surge in delisting announcements in June coincided with a sharp turnaround in Shanghai-listed stocks. The benchmark Shanghai Stock Exchange has tanked almost 30 percent since a peak of over 5178 hit in mid-June. This followed a staggering rally from the fourth quarter of 2014 onwards.