Just two years ago, Chinese internet companies were lining up for IPOs in the U.S. market, but their favor has since shifted towards local stock markets for the accessibility and higher valuations supposedly offered on the mainland.

Appetite for U.S. listings started to cool off in the beginning of 2015, since then nearly thirty U.S.-listed tech stocks have initiated privatization plans in seek of a domestic re-listing, among them are big names including Qihoo 360, Momo, Perfect World and Shanda Games. Reports show that not a single Chinese internet or tech company filed for a U.S. listing in the first quarter of this year.

Even for a domestic IPO, Chinese companies seeking to go public have quite a few options to choose from as for which market they want to get listed. Shanghai Stock Exchange (SHSE) and Shenzhen Stock Exchange (SZSE) are two main boards of China’s stock market, but the listing threshold is higher, for example, they require listed companies to recorded sustained profitability, a condition most internet companies can’t meet in their first few years of operation.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.