News of the plummeting value of Chinese net company stocks are throwing potential US IPOs into the "toilet of FUD" this morning, but the reality of the situation is probably good news for US companies without strong ties to China.
Case in point is the tenuous, though deep investment of Yahoo into Alibaba (the Chinese Google). Yahoo owns 43 percent of Alibaba and there was joy in Yahoo land over the success of AliPay (the Chinese PayPal), until the service was sold outright to the Alibaba CEO giving Yahoo 0 percent investment in AliPay. Seems the Chinese government, heavily invested in almost all Chinese corporations, are happy to sell shares of worthless companies to outside investors, but not so much when those companies actually make money. The problem is that unless a Chinese company start making money pretty quick, the government pipeline gets cut off. Hence the dropping value of a lot of internet companies in China.
Since US companies get something less then diddly from our government, they don't really have to worry about the value of their company. This is good news for IPO hopefuls in the "sea-to-shining-sea" because the perceived value of the company is closer to the truth than a company whose books are cooked by government investment. As Barry Goldwater said, "a government big enough to give you all you want is big enough to take it away."