Recently, many Chinese tech companies were able to have very successful IPO in the U.S. But Sky-mobi, which listed on Dec 10, was an exception to this rule.

First of all, it scaled down its IPO size, from raising US$150 million to US$58 million.  Its share price also dropped significantly after the IPO.  It closed at US$5.3 a share last Friday, 33% less than its IPO price of US$8.

The Hangzhou based company is in fact running a very lucrative business.  It runs an app store over low-end phones in China.  Most of these phones are manufactured in the Guangdong or Shenzhen, using MediaTek chips.  They are the so-called Shanzhai Ji.

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Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...