Sina Corporation (SINA)

[02opida]

Internet Boom

According to official data, there are 618 million Internet users in China. By 2015, these numbers could grow beyond the 850 million mark. McKinsey & Co. projects the online retail market in China will be worth $395 billion by 2015. This is around three times larger than its size in 2011.

This is the most significant underlying reason for the success of these IPOs. Since such companies also offer higher returns, investors have found them more attractive than their U.S. counterparts.

It comes as no surprise that the 10 Chinese companies which listed in the U.S. included micro-blogging platform Weibo Corp., a subsidiary of SINA Corp. (SINA) and Jumei International Holding Ltd., an Internet cosmetic retailer.