Once I think our business is mature enough I will go ahead with a listing. I'm quite confident that Netease will exceed its IPO price, but how far it goes as a company will depend on how it modifies its business to suit the whole environment. Its shares debut on the Nasdaq on July 12. But analysts said the novelty of Asian dot-com plays on Nasdaq appears to have worn off and investors are realizing it might take several years before these firms can turn profits. Some analysts suggested that a rethink of listing plans might be in order.
Investors usually expect to get their profits from listed firms as soon as possible.
But other analysts said that without profits, the firms had little choice but to seek listings abroad. To list on China's main boards, a firm must have three straight years of profits. Chinese Web firms can't even muster the one year of profits that will be needed to list on a proposed second board for high-tech and private firms. Analysts also said the firms needed sound business models just like any Old Economy firm in order to survive. You've got to be able to budget, control inventory.