The curse of ‘guanxi’ banking
News that some international investment banks sometimes try to curry favor with China’s political elite by hiring their offspring should not surprise anyone. read
Tag: Corporate governance
Nikkei Asian Review column
After a 14-month freeze, corporate issuers on the mainland are now back in the saddle for the year of the horse. read
Steering Hong Kong through choppy IPO waters
HONG KONG (Dow Jones Banking Intelligence) – Hong Kong Exchanges and Clearing Ltd. (HKEx) has faced much distraction this year. It now needs now to focus on the issues which can help it regain its status as an IPO destination. read
Cornerstones are difficult to corner
In this day and age, and amid continued volatile markets, for an IPO to succeed it’s pretty much a pre-requisite to secure cornerstone investors. Not only does their involvement considerably de-risks a transaction by parking away a big chunk of the shares on offer at an early stage; it also provides a high degree of confidence to other institutions – and to retail investors – to encourage them to subscribe to a deal that’s already been taken up by big, visible names. read
CNMC digs deep for Hong Kong IPO riches
HONG KONG (Dow Jones Banking Intelligence) – China Nonferrous Metal Mining (Group) Co. Ltd. (CNMC) is braving the Hong Kong IPO market amid weakened investor sentiment. The offer, which has been reduced in size and boasts a reasonable valuation, could still struggle. read
Trigiant’s IPO call may not connect
HONG KONG (Dow Jones Investment Banker) – Trigiant Group Ltd. has just filed a web proof information pack (WPIP) with the Stock Exchange of Hong Kong, the first step towards its proposed IPO. Little information has filtered about the structure of the deal, but a quick round up of ECM desks indicates that the mandate wasn’t competitive. Despite a limited trading history, the company has posted impressive growth rates and enjoys significant market share in an industry it dominates alongside two major competitors. At the same time, its reliance on a small number of clients and suppliers, and its high gearing, raise questions about the sustainability of its business model, as do some troubling past financial practices.
China Economic Review article
“IPO: A Global Guide” featured on 1 June in an article published in the China Economic Review on the subject of the liberalization of China’s financial system, and on the future of Hong Kong as a financial centre.
Will Resourcehouse’s IPO hit a hard rock?
HONG KONG (Dow Jones Investment Banker) – Having postponed a listing in Hong Kong three times (including in March this year), coal and iron ore behemoth Resourcehouse Limited has just delayed the start of the public offer for its multi-billion dollar IPO to May 30, from an initial date of May 26, with pricing now scheduled for June 3. It might be fourth time lucky for the listing this time around, but perhaps CEO Clive Palmer will need to wait – and try yet again.
Hong Kong makes a tough call on PCCW
HONG KONG (Dow Jones Investment Banker) – PCCW Ltd.’s hope of spinning off its telecommunications business into Hong Kong’s first listed business trust were shattered when the Stock Exchange of Hong Kong’s listing committee rejected the application. The decision, revealed last week by PCCW, reinforces the SGX’s lock on this type of security, and the temptation for Hong Kong to lure this class of listing away from Singapore must have been intense. But PCCW’s plan raised troubling corporate governance issues.
Behind Renren’s stock market venture
Chinese social networking site Renren is hoping to replicate the blowout success of another Chinese internet company, Qihoo 360 Technology, which sold US$176 million worth of shares in March on Nasdaq, the US technology stock market. read