by Joe McDonald, Associated Press
BEIJING – Just a few years after Chinese companies lined up to sell shares on Wall Street, a growing number are reversing course and pulling out of their U.S. stock exchange listing.
This week, Focus Media Holding, announced its chairman and private equity firm investors want to buy back its U.S.-traded shares and take the Shanghai-based advertising company private. The deal would value Focus Media at $3.5 billion, according to financial information firm Dealogic.
Some Chinese companies say they are pulling out of U.S. markets because a low share price fails to reflect the strength of their business. Withdrawing also eliminates the cost of complying with American financial reporting rules.
The withdrawals follow accusations of improper accounting by some companies and a deadlock between Beijing and Washington over whether U.S. regulators can oversee their China-based auditors.