When might the Chinese authorities lift the ban on domestic IPOs imposed last year to accelerate reforms and stabilise a weak stock market?
With the wonderful benefit of hindsight, it wasn’t surprising that predictions that the October suspension might be lifted in March proved wrong. After all, Beijing was in the throes of its leadership change.
But now that the new team is in place, there are signs that officials are preparing the ground for a resumption – albeit with tougher regulatory standards for issuers and sponsors alike. Continue reading »
The media and netizens alike have been chatting up a storm about the upcoming Alibaba IPO. Even though the offer has not been officially announced, estimates of the company’s potential value once it is listed on the Hong Kong Stock Exchange have literally doubled in the past six months.
Is this a repeat of the frenzy that accompanied Facebook’s IPO, which ended in crashing disappointment when the stock plunged after the sale? Or can Alibaba Group make a better fist of handling the market? Continue reading »
The rise in spending power of China’s 220m migrant workers is supporting the country’s economy as manufacturing stalls. James Kynge, principal of China Confidential, explains how a labour shortage is inflating wages and what this mighty consumer cohort is buying.
Hong Kong has endured almost daily thunderstorm warnings in recent weeks. On Friday, as markets reopened after a one day holiday, the gloom was clear to see in the equity market. The Hang Seng dropped 2.9 per cent.
China’s equity rally has clearly run into some trouble in recent weeks. The Shanghai index dropped a further 1 per cent on Wednesday, taking it into negative territory for 2013. Among the plethora of reasons offered for the stumbling run is the overhang of IPOs, and the potential that some of them might come to market soon.
China’s stocks plunged after the state council late on Friday announced increases in downpayments and borrowing rates for buyers of second homes in cities, dragging down the CSI 300 Index by the most in two years, after the government ordered more measures to cool property prices and growth in the nation’s services industries slowed. Continue reading »
The sector fell about 6 per cent on the week, dragging the Shanghai equity market down by nearly 5 per cent in its biggest drop in nearly two years. But, as the charts after the break show, Chinese property companies have weathered the post-2007 global turmoil pretty well, outperforming the overall Chinese Continue reading »
After being one of the world’s worst performing stock markets for the past three years, Shanghai has finally turned the corner, gaining 23 per cent since the start of December.
With a break from trading this week for the Chinese New Year holiday, this is a good opportunity to take a closer look at the Shanghai rally. Three interesting facts, each illustrated by a chart below, stand out. Taken together, they raise the tantalising possibility that Shanghai is maturing as a market, with institutions not retail investors driving the rally. Continue reading »
Last week’s HK$24bn ($3bn) placement for China Petroleum & Chemical Corp, better known as Sinopec, was a striking deal for its sheer size. But perhaps it was most remarkable for the fact that it involved only one bookrunner.
Talk to any equity or debt capital markets banker in Asia and they will swiftly raise a familiar gripe: the trend to put far more bookrunners on a straightforward deal than ever used to be the case. Continue reading »
That EM companies don’t return enough cash to investors has been a commonly-aired grumble for some time. Things could be about to change in Shanghai, though, as the regulator moves to pressure listed companies into minimum dividend payments. Continue reading »
Chinese equity markets rose again on Monday, extending their recent rally, thanks largely to widely-expected news that China Vanke, the country’s biggest developer by market value, would switch trading in its foreign-investor B shares from Shenzhen to Hong Kong.
Vanke, which had been suspended since late last month, surged by the 10-per-cent daily limit, pulling the Shenzhen B index of foreign-investor shares up by 4.7 per cent and triggering a 3.0 per cent jump in the Shanghai B-share index. There’s growing speculation that other companies will follow suit. Continue reading »
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