page_title: Early 21st-century Chinese reverse mergers
hierarchical_section_title: Early 21st-century Chinese reverse mergers
caption_attribution_description: English: The stock market is an area in which Social Media may have predictive power
context_page_description: Chinese reverse mergers within the United States are accountable for 85% of all foreign reverse mergers in the early 21st century. A reverse merger, also known as a reverse takeover, is where a private company acquires a publicly traded firm or "shell company" that has essentially zero value on a registered stock exchange.
  The shell company's securities since becoming dormant are not registered under the Securities Exchange Act of 1934, where transactions on the secondary market are monitored. Reverse mergers in US markets and other countries had occurred in the past, but a large wave of Chinese companies came to the scene in the early 2000s.
  At the beginning of the 21st century, China was still known as a developing country with about 1.26 billion citizens. With the staggering population and a large majority of state-owned enterprises becoming privatized by the early 2000s, China was poised for substantial economic reform and growth.
  In order for Chinese companies to expand and to be able to secure further financial capital investment, companies were seeking IPOs on the Shenzhen or Shanghai markets.
context_section_description: Chinese reverse mergers within the United States are accountable for 85% of all foreign reverse mergers in the early 21st century. A reverse merger, also known as a reverse takeover, is where a private company acquires a publicly traded firm or "shell company" that has essentially zero value on a registered stock exchange. 
  The shell company's securities since becoming dormant are not registered under the Securities Exchange Act of 1934, where transactions on the secondary market are monitored. Reverse mergers in US markets and other countries had occurred in the past, but a large wave of Chinese companies came to the scene in the early 2000s.
  At the beginning of the 21st century, China was still known as a developing country with about 1.26 billion citizens. With the staggering population and a large majority of state-owned enterprises becoming privatized by the early 2000s, China was poised for substantial economic reform and growth. 
  In order for Chinese companies to expand and to be able to secure further financial capital investment, companies were seeking IPOs on the Shenzhen or Shanghai markets. In seeking these Chinese market IPOs, the long and much more stringent Chinese process could potentially take up to two and a half years at the rate of 10 companies a month being listed.
caption: Stock market board and daily stock price changes
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