Four new IPOs and forex problems

Four new IPOs and forex problems

There have been several Chinese companies filing for IPOs in the US recently. is an online sports lottery is China’s copy of Craigslist. Sungy Mobile is mobile internet, mostly games. Q unar Cayman Islands is similar to Kayak.

Auditors of these companies are:           EY             PwC

Sungy Mobile    KPMG

Qunar               EY

Deloitte won none of these engagements although it previously had the largest market share by number of companies. Some private equity people said that they have been avoiding Deloitte for fear that their SEC problems might get in the way of a timely offering. The problems that the Big Four are having with the SEC get extensive coverage in the risk factors, with three of them saying that if the SEC acts against the China Big Four, they will not be able to file financial statements and may be delisted. Good news: KPMG signed Sungy’s report using its mainland affiliate, breaking from its former practice of signing these reports in Hong Kong. The mainland affiliate does the audits; it needs to sign the reports.

There are a number of ways to get Yuan valued assets into an IPO,  although none of them are legal. Certainly companies planning to list in the U.S. have not been involved in money laundering. Hopefully, the SEC will ask enough questions to get to the bottom of this problem for Chinese companies.

Four new IPOs and forex problems

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