Tag Archives: IPO

Shenzhen forum mulls future of finance in GBA

The Greater Bay Area has a unique opportunity to create new methods of financing industrial growth, a high-powered forum in Shenzhen heard last week.

When Chinese hi-tech firms see difficulties in raising money through traditional methods, the future is there for GBA cities to create efficient financing infrastructure that can support money-burning, fast-developing startups. However, Hong Kong, the world’s No. 1 IPO market, is not doing a good enough job in this regard.

So said Ba Shusong, chief economist at China Banking Association and HKEX, at a conference discussing innovation in the GBA, held by Guangdong’s leading media group on Thursday.

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GBA Briefs: 25/9/2019

Scapegoats or scoundrels? SCMP takes a closer look at the political weight of Hong Kong’s property oligarchs and notes that they have been shedding pounds ever since President Xi Jinping came to power. Read more.

No force necessary: An online opinion poll claims that most Hongkongers would rather see the police force disbanded than merely held accountable for recent alleged violent acts. Read more.

Alibaba preps for IPO: Alibaba has bought out a direct one-third stake in its finance subsidiary, Ant Financial, which analysts see as a precursor to its next mega-listing. This IPO would give the battered HK Stock Exchange a major boost. Read more on Caixin.

CICC teams with Tencent: One of the country’s biggest asset managers has established a joint venture with Tencent to run an online wealth-management firm. Talk about a fintech disruption. Read more on Caixin (in Chinese).

Stock Connect to include dual-class HK stocks

Stock exchange operators in Hong Kong, Shanghai and Shenzhen have agreed on conditions that will allow mainland investors to trade Hong Kong-listed dual-class shares of some popular technology companies, such as Xiaomi or Alibaba, through the Stock Connect programs, reports Caixin Global. 

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HK tightens rules on backdoor listings

Hong Kong’s securities regulator and stock exchange have announced changes to how they will combat backdoor listings, a tactic used by companies that might not otherwise qualify to list. The new rules will go into effect on October 1 and target changes in de facto control of listed companies or large-scale issuance of shares that result in such changes. 

The amendments will expand the listings regime’s test for control and de facto control to include both changes in an issuer’s controlling shareholder as well as changes in the single largest shareholder able to exercise effective control. 

The changes to Hong Kong’s listings rules come as HKEX seeks to shore up its reputation in the wake of a listings scandal and ongoing investigation into a top former employee for suspected corruption and misconduct in public office “in relation to the vetting of listing applications” of two listed companies. Read more on SCMP

UBTech Robotics sets sights on Shanghai IPO

Instead of seeking an IPO overseas like many in its field, UBTech Robotics, the Shenzhen-based manufacturer of human-like robots backed by Tencent, is planning its IPO in the new tech board in Shanghai. 

The board was launched in Shanghai last month, with more relaxed listing requirements than other Chinese exchanges. More than 100 tech companies have applied to list, aiming to raise US$16 billion in total. But large companies are yet to come. 

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Robotics firm CloudMinds aims for US IPO

A promising robotics company with its R&D facilities in Shenzhen has filed with the SEC to do an IPO in the US, according to local media. If successful, CloudMinds will raise US$500 million. 

Founded in 2015, CloudMinds calls itself an “intelligent cloud robot developer”. Headquartered in Beijing, but with R&D facilities in Shenzhen and Silicon Valley, it was founded by William Huang Xiaoqing, Dean of the School of Electronic Information and Communications of Huahzong University of Science and Technology. He previously headed China Mobile’s Communications Research Institute. 

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Netease to seek US IPO for Youdao

Nasdaq-listed Internet company Netease is said to be preparing for an initial public offering in the US of Youdao, its online education brand, which is expected to raise at least US$300 million, according to Bloomberg. 

Guangzhou-based Netease develops and operates online PC and mobile games, email services, music-streaming services and e-commerce platforms. Founded in 1997, it has turned out to be one of the country’s most remarkable stories of resilience through the ups and down of the online industry.

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HK No. 2 for biotech fundraising

Since the Hong Kong stock exchange revised its IPO rules last year, allowing unprofitable biotech firms to list, the city has become the world’s second largest biotech fundraising center. This is according to Wilfred Yiu, head of markets at HKEX.

Speaking at the Asia Venture Capital Forum in Hong Kong yesterday, Yiu said 84 new stocks were listed in the first half through HKEX, raising HK$70 billion. Seven were biotech companies. According to KPMG, Hong Kong also benefits from proximity to a large pharmaceutical market with growing demand for healthcare services. 

Read more in Chinese. 

GBA Briefs: 28/6/2019

Huawei Wants Talent:Huawei’s founder Ren Zhenfei said in an email to all the company’s staff that Huawei will recruit 20-30 “genius youth” from around the world this year. The number will be increased to 200-300 next year. “These geniuses will be like pond loaches to dive into our organization and activate our teams,” he said. Read more. 

Foshan Beckons:Foshan is getting in on the game of attracting Hong Kong and Macau youth, setting up its Sanlongwan Innovation Zone which will provide supporting services as well as subsidies for young people from the two SARs. Read more

Zhaoqing Jumps:Zhaoqing’s exports jumped 10.7% to RMB9.63 billion in the first five months, led by mechanical and electrical products, which accounted for 37.1% of the total. Read more

DCH Delivers:Hong Kong’s Dah Chong Hong Holdings has launched a logistics center in Hengqin’s Guangdong-Macau Cooperation Industrial Park with an investment of RMB250 million. Read more

Hydrogen Trucks:Foshan FEiCHi Bus company has delivered 100 hydrogen fuel logistic vehicles to Shenzhen, adding to the last 70-unit delivery at the end of last year. Read more

CLP Awakes: CLP Holdings, one of two major electricity providers in Hong Kong, is working with start-ups to bring itself and its customers into the digital era. Read more. 

HK IPO Arrests: Hong Kong’s securities regulator and anti-graft agency have arrested a former executive of the Hong Kong bourse’s initial public offering vetting team and two of his associates for suspected misconduct of helping over 30 unqualified applicants to go public. Read more. 

E-Smokes Out:Shenzhen has added e-cigarettes to its smoking control list, further tightening the smoking ban in public places including bus platforms and waiting areas in public institutions. Read more. 

Miniso plans for $1b IPO

Guangzhou-based budget household and consumer goods retailer, MINISO Co., is planning an initial public offering that could raise about US$1 billion, reports Bloomberg.

The Tencent-backed company was founded by Japanese designer Miyake Junya and Chinese entrepreneur Ye Guofu in 2013. Tencent and Hillhouse Capital invested RMB1 billion in the retailer last year in its first external financing round, according to a statement at the time. 

MINISO has been compared to the popular Japanese minimalist retail brand Muji, albeit at a cheaper price. Since its conception, MINISO has been caught into a number of copyright disputes, with the French luxury goods conglomerate LVHM accusing it of design infringement. 

The company’s popularity, however, has not been dampened by such accusations. According to its website, MINISO currently operates more than 3,500 stores across 80 countries including China, the US, Brazil, the UAE, Russia and Africa. The company posted revenue of RMB17 billion in 2018.

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