Denny's Feed
Jul 24, 2015

China’s oldest investment bank CICC fails to pay off for KKR, TPG

HONG KONG, July 24 (Reuters) – Private equity firms KKR & Co
and TPG Capital are making poor returns on their
investment in China International Capital Corp (CICC), the
country’s oldest investment bank that is readying an IPO but has
struggled to compete with younger rivals.

CICC, formerly led by Levin Zhu, the ‘princeling’ son of
former Chinese premier Zhu Rongji, filed late on Wednesday for a
Hong Kong initial public offering (IPO) that sources have said
could raise at least $1 billion.

Jul 24, 2015

Nikkei’s “pink ‘un” buy highlights need to escape greying Japan

HONG KONG, July 24 (Reuters) – In splashing $1.3 billion for
Britain’s Financial Times, media group Nikkei is just the latest
in a string of Japanese companies driven to look overseas to
escape poor growth prospects from a rapidly aging domestic
population.

Flush with abundant bank funds available at near-zero
interest rates, and bolstered by stock markets at multi-year
highs, Japan Inc is not short of capital to plough into overseas
bids in search of profits that remain stubbornly hard to
generate at home.

Jul 23, 2015

Central China Securities seeks $330 mln in deep-discounted share offer -IFR

HONG KONG, July 23 (Reuters) – Brokerage Central China
Securities Holdings Co Ltd is seeking to raise about
$330 million by selling new shares to fund its margin finance
business, IFR said on Thursday, citing a term sheet.

The capital raising is the first by a brokerage since a
stock market plunge earlier this month that wiped out more than
$3 trillion of investors’ wealth. Before then, Chinese brokers
had raised about $30 billion so far this year to meet
unprecedented demand for margin finance from retail investors.

Jul 22, 2015

After Toshiba scandal, foreign investors want tougher Japan governance steps

HONG KONG (Reuters) – Japan needs bolder measures such as harsher criminal sanctions for fraud and whistleblower protections to improve corporate transparency and prevent a repeat of the accounting scandal seen at Toshiba Corp, foreign investors and governance experts said.

Toshiba’s chief executive Hisao Tanaka and a string of other senior officials resigned on Tuesday after an independent inquiry found he had been aware the company had inflated its profits by $1.2 billion over several years.

Jul 21, 2015

Gold’s fall threatens to cool temperature of mining M&As

SYDNEY/HONG KONG, July 21 (Reuters) – A dramatic slide in
gold prices this week threatens to squash a run of mining
mergers and acquisitions just as momentum in the sector was
picking up.

Mining executives and fund managers warn predators will turn
more cautious before splashing out cash or approving capital
raisings, at least until bullion shows signs of stabilising.

Jul 14, 2015

China IPO freeze opens door to alternative financiers

HONG KONG, July 15 (Reuters) – China’s move to halt new
company listings on its stock markets is offering private equity
firms, hedge funds and sovereign wealth funds an opening to fill
private companies’ funding needs, paving the way for more M&A
activity.

After a plunge in share prices wiped out more than $3
trillion of market value in three weeks from mid-June, China
suspended IPOs to close the pipeline of new issues, which tend
to suck money out of the market.

Jul 10, 2015

China market blow-out has Hong Kong basking in financial hub glow

HONG KONG (Reuters) – Less than a year after huge street protests prompted a re-think about investing in Hong Kong, a wild four-week ride in mainland China’s stock markets makes the city’s financial hub look like a beacon of seasoned stability.

China’s many-pronged state intervention in its markets, aimed at steadying share indexes that plunged by close to a third, has played to Hong Kong’s strengths as a proven, transparent market – and a safer entry point for those wanting a piece of China in their investment portfolios.

Jul 7, 2015

Discounted $820mln block deal launched in China Haitong Securities

HONG KONG, July 7 (Reuters) – A unit of China’s state-backed
investment firm Haixia Capital has launched a deeply discounted
block deal in Haitong Securities Co Ltd seeking to
raise about $820 million, after the stock slumped by more than a
quarter in the past two days.

Chinese stock brokers have come under severe pressure after
the central government pressed 21 brokerages into action to
utilise 15 percent of their net assets, or roughly 120 billion
yuan ($19.3 billion), to buy stocks as part of a Beijing-led
effort to calm investor sentiment.

Jul 6, 2015

China equity deals surged through market chaos

HONG KONG, July 6 (Reuters) – China’s decision over the
weekend to curb IPOs followed a splurge of new share offerings
that belied expectations of a slowdown as markets went into
free-fall, wiping nearly $3 trillion off its stock markets in
three weeks.

Bankers say the resilience of equity-raising activity in the
face of the local market tumble and overseas threats in the form
of Greece’s debt crisis illustrates the power of Chinese
domestic institutions, which were flush with money going into
the turmoil after a year-long stock boom.

Jul 3, 2015

Tencent deal throws spotlight on Hong Kong backdoor listings

HONG KONG (Reuters) – A heavily discounted purchase of a loss-making solar-panel maker last week has cast a spotlight on the Chinese takeovers of so-called listed shell companies in Hong Kong, which may be used to sidestep the bourse’s rigorous listing process.

China’s No.1 social network and online media company Tencent Holdings Ltd (0700.HK: Quote, Profile, Research, Stock Buzz) and developer Evergrande Real Estate Group joined forces to purchase Mascotte Holdings Ltd (0136.HK: Quote, Profile, Research, Stock Buzz) for $97 million, a 97 percent discount on the target company’s market capitalization.