The pricing of Modern Amperex Know-how’s (CATL) Hong Kong shares on the prime finish of the vary bodes nicely for China’s main firms eyeing an inventory within the metropolis, however the richly valued supply value could damage the brand new inventory’s first-day efficiency because of its smaller-than-average low cost to the corporate’s mainland-traded shares.
Wu Qing, chairman of the China Securities Regulatory Fee, reaffirmed the help for high-quality Chinese language firms to checklist within the metropolis final week, showcasing Beijing’s resolve to solidify Hong Kong’s place as a prime world monetary centre amid an all-out confrontation with the US. The Hong Kong inventory alternate additionally mentioned that it will fast-track approvals for twin listings.
CATL’s itemizing “is definitely one of many main measures to help Hong Kong’s fairness market, and one of many methods to assist Chinese language main firms to seize extra worldwide funds”, mentioned Jason Chan, an fairness strategist at Financial institution of East Asia in Hong Kong.
CATL’s supply value is 6.7 per cent beneath the shut of 260.18 yuan for its Shenzhen-listed shares on Thursday. That compares with the typical 25 per cent low cost for the Hong Kong-traded shares of the 158 dual-listed Chinese language firms, reminiscent of ICBC and Ping An Insurance coverage Group.
