China Reconsiders the Homecoming Party

Some Chinese companies list their stocks on US exchanges, and to their executives, at least, those shares have been looking cheap. Managers have been leading bids to buy up US shares and take the companies private again. One advantage of the move is the opportunity to eventually relist the stock in China, where investors might be willing to pay a higher valuation. Shares of several US-listed Chinese companies that had been targets of buyout offers, including 21Vianet Group, YY, and Momo, dropped sharply. Regulators may have been concerned about a speculative frenzy that was building for shares in some small companies already traded in China.