Sina becomes private as US-China tension increases


The Beijing-based firm is being privately taken over by its chairman and chief executive Charles Chao, who values ​​the company for $ 2.6 million, Sina (Sina) Said in a statement on Monday.

The offer price of $ 43.30 per share is a premium of about 8% of the company’s closing price in New York on Friday, and is even sweeter than the initial purchase offer made by New Wave Holdings, Chao’s investment company, in July.

On Wall Street, Chinese companies are also facing greater scrutiny. But coffee (LK) Nasdaq was shut down following the revelations of large-scale accounting irregularities. US lawmakers, government agencies, and stock exchanges have taken steps aimed at limiting Beijing’s access to America’s vast capital markets.
In May, the US Senate unanimously passed a bill that would prohibit companies refusing to open their books from listing on Wall Street. The bipartisan co-sponsors of the bill said the goal is to “kick fraudulent Chinese companies from US exchanges.” The bill still required the US House of Representatives to pass.
And in August, the US President’s Working Group Financial Markets released a report recommending increased scrutiny of listed Chinese companies and diligence requirements for investment in Chinese companies.
Fearing potential regulatory trouble in the United States, as well as wanting to get closer to investors who actually use their products, several marquee Chinese tech firms offered secondary listings in Hong Kong and Shanghai in recent months Is – e-commerce companies among them Alibaba (Saint) And range (range).

Meanwhile, Alibaba’s financial partner Ant Group chose Shanghai and Hong Kong for its much-awaited initial public offering, even though Alibaba had a blockbuster IPO on the New York Stock Exchange in 2014.

Eurasia analysts wrote in a note last month, “Chinese companies currently listed in the US will continue to rout to issue secondary shares in Hong Kong and domestic markets and these markets will also be the main destinations for new listings.”

– Paul La Monica contributed to this report.

    .

Leave a Reply

Your email address will not be published.