Sunday, March 27, 2005

Kingsoft maybe listing

According to Pacific Epoch, possibility that Kingsoft is mulling a listing to overseas stock market is growing. They are said to be negotiating with several investment banks. They aim to get 240 million USD from going to public. There have been rumors about this all winter and spring and these rumors just won’t die, I guess there is something in the air.

I wonder, how much money States has for such enterprises? Who keeps buying all that stock? It’s not that these companies are so big that they can get into indexes and therefore into pockets of big investors. It has to be smaller players that are biting into Chinese online game companies. Chinese market is mushrooming competition and margins are dropping, there can’t be basis for sound development for all of these game companies, but maybe investors are banking on proposal that companies with foreign capital are stronger and therefore will survive.
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