Drew Bernstein, Co-chair, MBP, is heavily quoted on the effect of China’s new regulations on Chinese companies going public in the United States.
By Chris Metinko
Excerpt: “The U.S. and Chinese economies are the two biggest in the world,” said Drew Bernstein, co-chairman of Marcum BP, an Asian-focused audit and advisory firm with offices in China and throughout Asia. “Chinese companies are not just coming to the U.S. market—they are being brought here by U.S. investors.”
Bernstein said China-based companies with strong revenue growth, corporate governance and disruptive technology will continue to spark interest from VCs and other investors.
“In fact, the smaller unicorns and non-unicorns such as emerging growth companies have promising futures given their growth trajectories,” he said.
While emerging growth companies between $500 million and $1 billion in value will remain attractive to venture investors when compared to some of their larger competitors due to their high-revenue growth trajectory and limited impact on China’s “Made in China” 2025 plan—an initiative to technologically upgrade manufacturing facilities—investors also will look elsewhere for those same types of companies, Bernstein added.
“Investors are searching far and wide for these opportunities, many of which can be found in Southeast Asia—the next frontier,” Bernstein said.