Shanghai IPOs Are Outperforming US Shares

07/03/2014 7:00 am EST

Focus: GLOBAL

Chinese tech stocks are raising more money on US IPOs than they have since 2007—and gaining share value—says the staff at Kapitall.com.

The big economic story of the year is the upcoming Alibaba IPO, which could turn out to be one of the largest tech IPOs of all time.

But there's more to the story of Chinese tech than Jack Ma's widely anticipated international rollout. Chinese companies raised about $3 billion this quarter, the most since 2007.

And they've outperformed our companies, too. US stocks gained an average of 21% following their 2014 IPOs, Chinese stocks opening on US exchanges gained 33%.

That got us thinking about Chinese stocks, so we decided to run a screen. To do that we started with the universe of about 50 Chinese tech companies with shares trading on US exchanges.

We then screened for companies experiencing spikes in institutional purchasing—as 11 in our screen were. So we set the screen even higher, only including companies that have had at least 15% of their float purchased by institutional investors this quarter.

This indicates that the experts who run hedge funds and pension funds think the stock is a strong investment. Do you think they're right? Use the list below to begin your analysis.

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1. AutoNavi Holdings Limited (AMAP): Provides digital map content and navigation and location-based solutions in the People's Republic of China (PRC). Market cap at $1.11B, most recent closing price at $20.64.

2. ChinaCache International Holdings Ltd. (CCIH): Provides Internet content and application delivery services to businesses, government agencies, and other enterprises in the People's of Republic of China. Market cap at $515.32M, most recent closing price at $22.57.

3. Phoenix New Media Limited (FENG): Provides content on an integrated platform across Internet, mobile, and TV channels in the People's Republic of China. Market cap at $875.54M, most recent closing price at $11.68.

4. Shanda Games Limited (GAME): Engages in the development and operation of online games in the People's Republic of China. Market cap at $1.78B, most recent closing price at $6.66.

5. JinkoSolar Holding Co., Ltd. (JKS): Engages in the manufacture and sale of solar power products in China and internationally. Market cap at $688.7M, most recent closing price at $30.48.

By the Staff of Kapitall.com

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