I should have reread the whole thing. Wasted time looking into it.
Is there a reason a lot of companies are reluctant to go public in China?
Chinese Economics Thread
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Is there a reason a lot of companies are reluctant to go public in China?
I am not knowledgeable to answer this question. For Huawei, it's well known that Ren Zhengfei once said that he does not want his company to be driven by profit seeking because of short sighted shareholders/investors or something like that. But I am not even sure if he actually said this.
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"billion dollar public companies by mcap" plus listed in stock exchange..
most of the Chinese firms don't list in stock exchange.
if you see Fortune500 and number of Billion dollar club companies, China is on top or 2nd only to USA.
The Chinese stock market is not really fully functional. This has been known for decades. The U.S. stock market is also not functional, but in the opposite direction - stock prices for large caps are gambling tokens that have little to do with the underlying company fundamentals.
The real measure is revenues and profits.
The real measure is revenues and profits.
Also, even by revenues and profits Chinese companies are underestimated compared to U.S. companies because of China's lower price level. Cross country comparisons are converted at present exchange rates, but many costs like employee salaries are paid in domestic currency.
TL;DR. The link says "China falls to no 2" but the headline correctly says "China falls to no 3".
Nice! Unfortunately number 4 ("Cayman Islands" lol) is at $455 billion and China's at $765 billion so it's going to take a while to get down there.
It's Bloomberg, they can't count.
Cayman is where the rich a-holes of the world park their ill gotten gain. Great beaches though.
