Home is where the money is, for now. On Wednesday, internet security software maker Qihoo became the latest US-listed Chinese company to receive a buyout offer from investors and management — the 14th this year.
The reason is clear. US-listed entities have been left behind while a bull market rages in China. Many trade on a sorry 20 times 2016 earnings forecasts, or less; the tech-heavy Shenzhen index is on a giddy 33. The incentive that drove Chinese companies to seek US listings — higher valuations — has been reversed. Companies taken private can relist at higher valuations back home, as Focus Media has done. So more buyouts are likely. Other groups with market values under $5bn include education provider New Oriental Education and the recruiter 51Job.
