YY prices climb following IPO

The first Chinese company to list on a US stock exchange since April, YY Inc, is lifting spirits for a recovery in the market for US-listed Chinese firms, which has been blighted by fraud allegations for the past two years, Bloomberg reported. Since November 21, the Guangzhou-based online social network company jumped 7.8% to US$11.32. It was the third Chinese company to list in the US this year, down from 42 in 2010. The IPO was priced at the bottom end of YY’s target that ranged from US10.50 to US$12.50, raising US$82 million. With a slowing economy and destructive allegations from short sellers, the number of Chinese IPOs in the US has been reduced to a trickle. The other Chinese companies that listed in the US this year have grown by more than 12% after cutting prices by 40% to counter weaker demand since their IPOs.