chinese-consumption-plays-kick-off-ipos

Chinese consumption plays kick off IPOs

Down jacket designer Bosideng and Kappa-brand owner Dongxiang hope to raise up to $836 million and $702 million, respectively.

By Anette Jönsson

September 20, 2007

There is one investment concept that virtually every equity investor gets excited about and that is Chinese consumption. It doesnÆt really seem to matter what products these companies sell û as long as they are targeting the domestic market and are able to tap into ChinaÆs rising income levels and the urbanisation theme.

Not only have investors been piling into these consumption plays during their initial public offerings, but they have continued to buy them in the secondary market to the extent that the top brands now trade at 30-40 times their estimated 2008 earnings.

Investors now have two more of these companies to choose from after Bosideng International and China Dongxiang kicked off the...

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