MarketBeat: Chinese Marketocracy

October 26, 2006 2:48 p.m.

WallStreetJournal online, wsj.com

2:52 p.m.: Shares of China's Home Inns & Hotel are running up sharply in their Nasdaq debut today, rising 66% after boosting the 7.9 million-share offering's price to $13.80 a share from a range of $10 to $12 a share. Francis Gaskins, president of research site IPOdesktop.com, says it's more evidence that offerings from China have gained wider acceptance in the past few years. "I think if it had come a year ago, it would have had interest, but not as much as it does now," he said.

New listings from China have fared well recently, including medical-device maker Mindray Medical International and language-school operator New Oriental Education & Technology Group, which gained 30% and 39%, respectively, in their first day of trading. Eight different China-based IPOs have priced in the U.S. markets in the past 12 months, according to Renaissance Capital. "Three or four years ago people were saying the laws aren't there, the traditions aren't there, the accounting system isn't there, but all those things are maturing quite rapidly," Mr. Gaskins said.

--David A. Gaffen