Business Channel 2006-11-20&22

Investors¹ don't buy Russian shares looking for small gains, they do it to make a killing². With that potential comes high risk. That's why Russian companies like steel giant Severstal are flocking to the London Stock Exchange. Some Russian companies hope their sometimes shaky reputations will be steadied by listing on the LSE. But there are worries that investors could get burned because not all LSE rules apply for non-British companies.

The problem is most people don't understand the different rules applied³ to these overseas companies and I think that if there is a problem with one of these overseas companies collapsing⁴, there will be a big scandal.

The LSE notes that these Russian shares and other so-called GDRs are not sold to individuals.

These are products that are, are designed for the professional market, so for professional investors, institutional investors and, it's no surprise that you'll see many of the larger global emerging markets funds, but also other funds are buying these, these GDRs.

And buying they are, $6 billion was raised on the LSE by Russian companies in 2005; that could top 20 billion dollars in 2006. The reason: London's cheaper and less regulated than US stock markets. But many Russian IPOs in the past 2 years have underperformed. And one planned billion-dollar float was pulled last month. That's why Severstal and other recent IPOs have been priced to sell.

Russian companies have been in the learning curve in this period, um, so the approach to IPOs has changed. Companies are now making more realistic assumptions in their prospectus⁵ and are much more aware of the need to follow up with investors.

Another worry is that so many Russian IPOs are tied to commodity prices, oil, gas and steel, prices that are now falling. But the LSE says it's now seeing interest across a range of sectors⁶.

We're seeing the full flavor of the Russian economy. We're seeing retail⁷ companies coming to market, we're seeing telecommunications, ah, perhaps even in the next wave we may see technology.

In fact some 50 Russian companies have expressed interest in selling shares in 2007. Even though some analysts⁸ warn Russian shares are more for speculators than for investors.

Diana Magnay, CNN London.


learning curve (n.)
the rate at which you learn a new skill
Everyone in the centre has been through a very steep learning curve.

1 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

2 killing   

n.巨额利润；突然赚大钱，发大财

参考例句：

• Investors are set to make a killing from the sell-off.投资者准备清仓以便大赚一笔。
• Last week my brother made a killing on Wall Street.上个周我兄弟在华尔街赚了一大笔。

3 applied   

adj.应用的；v.应用，适用

参考例句：

• She plans to take a course in applied linguistics.她打算学习应用语言学课程。
• This cream is best applied to the face at night.这种乳霜最好晚上擦脸用。

4 collapsing   

压扁[平]，毁坏，断裂

参考例句：

• Rescuers used props to stop the roof of the tunnel collapsing. 救援人员用支柱防止隧道顶塌陷。
• The rocks were folded by collapsing into the center of the trough. 岩石由于坍陷进入凹槽的中心而发生褶皱。

5 prospectus   

n.计划书；说明书；慕股书

参考例句：

• An order form was included with the prospectus.订单附在说明书上。
• The prospectus is the most important instrument of legal document.招股说明书是上市公司信息披露制度最重要法律文件。

6 sectors   

n.部门( sector的名词复数 )；领域；防御地区；扇形

参考例句：

• Berlin was divided into four sectors after the war. 战后柏林分成了4 个区。 来自《简明英汉词典》
• Industry and agriculture are the two important sectors of the national economy. 工业和农业是国民经济的两个重要部门。 来自《现代汉英综合大词典》

7 retail   

v./n.零售；adv.以零售价格

参考例句：

• In this shop they retail tobacco and sweets.这家铺子零售香烟和糖果。
• These shoes retail at 10 yuan a pair.这些鞋子零卖10元一双。

8 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。