Xunlei has postponed its initial public offering in the US amid volatile markets and questions over the governance and accounting standards of Chinese listed companies.
The online video site, which cancelled a previous float in June, released a short statement saying it had called off the listing due to volatile stock market conditions. Xunlei had aimed to raise $114 mn through a listing on NASDAQ.
Analysts say recent questions over accounting standards and corporate governance at Chinese listed companies are affecting market sentiment.
‘To be fair, when the risk appetite is reducing or valuations are high, (investors) don’t want to take that corporate governance risk,’ says Kelvin Ho, an analyst at Yuanta Securities, in a report from Reuters.
This week Fitch released a report warning that even diligent Chinese companies may find it hard to access funds due to negative publicity surrounding their peers.
No such issues have been raised at Xunlei, the Reuters report adds.
