Things of the past

That Chinese internet companies would list in the United States might seem strange, analysts say, but it once made sense.

For one thing, Chinese investors' enthusiasm for startup listings is relatively recent, whereas US investors have been rewarding internet startups with high share prices for decades.

But more important was the fact that Chinese regulators wouldn't let such firms list in the first place. The China Securities Regulatory Commission (CSRC) has required any company to be profitable for several years before listing – a rule which ruled out most Chinese internet companies.

But Beijing aims to make Shanghai a global financial center on par with London, Hong Kong and New York by 2020, and it can't do that without making room for its most innovative companies.

"The obstacle to coming back has been removed," said China Renaissance in an email to Reuters. "The issue is not whatever valuation you can get in China. Hot market themes are fleeting."

Profitability requirements are being eased, and there's also a shortcut: a merger with a Chinese company with a listed shell.

Chinese display advertising giant Focus Media, which bailed out of New York in 2013, said this week it will relist in China via a $7 billion reverse merger with rubber manufacturer Jiangsu Hongda in what analysts say is a model for returnees to follow.