stlplaceLast Updated on April 29, 2007 by stlplace
It’s the so called “golden week” here, it’s also my first time spending the golden week in China (we did not have this kind of long holidays back in middle 1990s). I will spend some time with my family and friends. No more stocks. No more computers (if I can accomplish that), and I can not promise I will write blogs in next week (May 1 to 7).
Happy holidays !!!
Last Updated on April 29, 2007 by stlplace
This is a too big question. But I have thought this thing for quite a while, and want to share my thoughts. A few weeks ago I was watching the “Boss Town” program at China-CBN, the host posed this exact question to the founder of Qiao Xing (Nasdaq: XING), Mr. Wu Ruiling: why do you go to Nasdaq considering the overhead of compliance (Sarbane-Oxly etc.)?
Fair question. Mr. Wu shared one reason: when a company grows to a certain stage, it’s better to have more than one boss (owner): other minority owners can contribute to the development of the company.
I think besides “better corporate governance/management”, there are at least two reasons: 1) To raise the money (capital), 2) To raise the company profile. These two reasons fit well with the recent Chinese IPOs in last Fall: New Oriental (EDU), Home Inns (HMIN), and Mindray (MR). Let’s explain one by one.