SHANGHAI/NEW YORK, May 1 (Reuters) - When Chinese social networking site Renren goes public this week, investors will likely ignore big risks the company faces, and be lured instead by a combination of the words 'China' and 'social networking.'
Hot Chinese tech companies like Internet search engine Baidu Inc and online video site Youku.com have risen triple-digit percentages since their IPOs, whetting investors' appetites for such offerings.
And this is in a sector that is hot in the United States. Facebook, the biggest social network company in the world, has a market value of somewhere around $70 billion, based on a share sale currently being contemplated, making it worth more than companies such as Boeing Co.
The demand for Renren shares was clear on Friday when the company raised the expected price range of its IPO 30 percent to $12 to $14 per share.
'Appetite to invest in China right now is so strong that some investors are willing to ignore factors that they wouldn't in other markets,' said Mark Natkin, managing director of Marbridge Consulting, a Beijing-based company that advises investors on China's Internet and telecommunications sectors.
Werde da wohl einsteigen; wie sind eure Meinungen? Cheers