China's Biggest IPOs and their Legal Advisers

By Brandon Kirk of China Law & Practice

China has seen a huge surge in the number and profitability of initial public offerings [IPOs] in the past year, while the local stock markets have steadily risen to unprecedented levels. The rapid growth has benefited a wide spectrum of investors, from investment banks and high net-worth individuals to housewives and taxi drivers. A record number of stock-trading accounts have been opened in the mainland, as households empty their savings accounts into capital markets, and some even quit their jobs to be full-time speculators. But many point to recent fluctuations as warning signs of instability, and overvalued stocks have many investors worried, while high prices carry over to prospective private buyouts. Even "Superman" investor Li Ka-Shing, Hong Kong's richest tycoon and keen market analyst, has expressed concern about the mainland stock market.

Despite a rapid growth in the quantity of stocks available in the local markets, PRC investors have so far been limited to buying shares domestically, which in turn pushes the market to astronomically high levels. These investors, who are often less sophisticated and are largely speculative, complain that they don't have enough quality stocks to choose from