There's been a lot of talk recently about Chinese initial public offerings (IPOs). Last year, China's regulators halted domestic IPOS after the financial crisis came to a head with the collapse of Lehman Brothers. This move placed the plans of about 30 Chinese companies in limbo.
But now, as of June 19, the Chinese government lifted its IPO restrictions and approved the country's first IPO on the Shanghai stock exchange. So far this year, there have been four Chinese IPOs on the Hong Kong stock exchange.
Despite the regulations in China, Chinese companies have still been able to go public in the U.S. this year. And one of most successful IPOs in 2009 was a Chinese online gaming company that soared 25% on its opening day on the NASDAQ back in April.
Two weeks after its IPO, I recommended this gaming company to my Asia Edge subscribers, and we have profited nicely ever since. Shares are up 46% in just 11 weeks. But it's not too late to rake in your share of the profits.
This Chinese gaming company experienced immense success from a blockbuster online game that debuted in May 2007. The game is adapted from one of my favorite Chinese novels, an epic about three exceptional martial artists. It's one of the bestselling Chinese novels of all times, so it was widely popular among Chinese gamers.
In the two years since the game's release, this company has grown into one of the leading online game developers and operators in China. It develops, operates and licenses massively multiplayer online role-playing games, also known as MMORPGs. And the company currently has three new games in the pipeline.
With strong growth from the launch of new online games and the incremental revenues from existing games, I'm anticipating another year of strong earnings growth in 2009. And since the company went public on the NASDAQ in April, you have the opportunity to participate and take advantage of its success.
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