HONG KONG (Dow Jones Investment Banker) – The long-awaited international board of the Shanghai Stock Exchange (SSE) apparently is inching closer to becoming a reality. But its offerings are likely to be dominated by Chinese companies incorporated offshore, and, if history is any guide, listing there is likely to do little in the long run for truly international businesses.
HONG KONG (Dow Jones Investment Banker) – The first-ever yuan-denominated IPO in Hong Kong – for Hui Xian REIT – priced Tuesday, after having received a rather subdued reception from the public. Reasons include a rather aggressive yield, the offer structure for the transaction and controlling shareholder Li Ka-shing’s reputation for leaving little on the table when pricing deals, as well as uncertainties about aftermarket trading and macro market developments.
HONG KONG (Dow Jones Investment Banker) – Another week, another beauty pageant for a multi billion- dollar IPO in Hong Kong. In local fashion, Guangdong Development Bank (GDB) is said to be meeting brokers next Sunday and Monday to select bookrunners for a capital raising of up to US$4 billion, with a dual listing in Shanghai and Hong Kong.
HONG KONG (Dow Jones Investment Banker) – With the lure of diamonds and soaring multiples in the jewelry sector, the jockeying is now on to become a bookrunner for the IPO of Chow Tai Fook Jewellery Co. Ltd. The offering, in Hong Kong, is expected to raise some US$3 billion.
HONG KONG (Dow Jones Investment Banker) – Allocating distinct retail tranches within equity capital markets deals is a purely mechanical exercise that involves balloting by a share registrar and transfer agent. By contrast, assigning shares to institutional investors is more of an art than a science, and involves making subjective judgment calls. The recent US$2.5 billion equivalent placement by Ping An Insurance (Group) Company of China Ltd. shows how a seemingly simple transaction can leave a sour taste with investors, as well as the importance of structuring and allocating offerings in an even-handed manner.
HONG KONG (Dow Jones Investment Banker) – Last weekend’s simulated trading exercise for yuan securities in Hong Kong, coordinated by the stock exchange, was always a clear signal that the long- awaited launch of the first real estate investment trust to be traded in China’s currency would soon follow. True to form, investor education may be about to kick off for the deal. What has emerged so far shows a few innovations in the offer structure, as well as potentially aggressive pricing.
HONG KONG (Dow Jones Investment Banker) – The large-scale trading simulation this week of offshore yuan-denominated securities in Hong Kong lays the groundwork for a market that could soak up the mountains of Chinese currency that cannot be repatriated easily to the mainland. It also looks very much like a dress rehearsal for Cheung Kong (Holdings) Ltd.’s long-awaited IPO and listing of a US$1 billion equivalent, yuan-denominated REIT in Hong Kong.
On 18 March 2011, I wrote a column which was published in the “Features & Analysis” section of the website of BBC News. The topic was the Stock Exchange of Hong Kong’s simulation exercise for the trading of renminbi-denominated securities and their development.
To read the article, please click HERE.
HONG KONG (Dow Jones Investment Banker) – When the board of a good-sized Chinese company is choosing a venue for an international IPO, the short list usually has three names on it: the Stock Exchange of Hong Kong, NASDAQ and NYSE Euronext in the US.
As more Brazilian companies are said to be considering a listing Hong Kong to follow in Vale’s footsteps, and as reported by The Wall Street Journal on 23 February, Hunan-based Sany Heavy Equipment International Holdings Co. Ltd. (“Sany International”) has announced plans to issue DRs in Brazil. read
