HONG KONG (Reuters) – A recent shouting match between senior bankers involved in Hong Kong’s second-largest IPO so far this year illustrates the competitive squeeze on banks from Chinese companies offering incentives ahead of lucrative initial public offerings.
At a routine September 6 meeting of around 20 underwriters to China Huishan Dairy Holdings Co Ltd’s (6863.HK: Quote, Profile, Research, Stock Buzz) planned $1.3 billion IPO, tempers flared between two bankers from HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) and Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz), said people who were at the meeting and others briefed on the incident. One said the row escalated to the point where the Goldman banker threatened to have his HSBC rival fired.
HONG KONG (Reuters) – China Huishan Dairy plans to raise up to $1.3 billion in a Hong Kong initial public offering to fund its expansion, with the world’s No.2 economy expected to catch up with its Asian peers in the consumption of infant formula, yogurt and fresh milk.
Investors have bought up shares of companies including China Modern Dairy (1117.HK: Quote, Profile, Research, Stock Buzz) and China Mengniu Dairy (2319.HK: Quote, Profile, Research, Stock Buzz), betting that the country’s huge consumer market will fuel China’s long-term intake of milk products. China’s current per capita dairy consumption rate of 23 kilograms is less than half of its Asian neighbours, according to Macquarie.
HONG KONG, Sept 3 (Reuters) – For the Chinese banks seeking
billions of dollars in upcoming stock offerings, a concern is
growing that the money will only refinance old loans and do
little to prevent the lenders from hitting up shareholders for
more cash in a few years or less.
In 2010, Chinese lenders raised $82 billion as a surging
stock market helped them replenish cash after a post-financial
crisis lending binge. Now, in a far less forgiving climate, they
are again lining up for more money, attempting to tap investors
as the economy slows, profits shrink and unpaid debts pile up.
HONG KONG/SINGAPORE, Aug 27 (Reuters) – The Hong Kong Stock
Exchange named industry veteran Garry Jones as the CEO of the
London Metal Exchange, banking on a former top executive at the
NYSE Liffe to help drive its expansion into commodities and
Jones, a 30-year veteran of exchanges and financial services
but with limited experience in metals, inherits a difficult role
at a time when the LME is caught in a controversy over
warehousing metals and its impact on consumers.
HONG KONG (Reuters) – A U.S. banking regulator’s probe into JPMorgan’s (JPM.N: Quote, Profile, Research, Stock Buzz) hiring practices in China will have rival banks scrambling to review their own records, lawyers say, in a market where ties to political and business leaders can be key to winning big deals.
Banks around the world commonly hire people with government connections, but this is especially prevalent in China due to the role the ruling Communist Party plays in the country’s business.
HONG KONG, Aug 19 (Reuters) – Alibaba Group Holding Ltd
is in talks with the Hong Kong stock exchange about
allowing its founders to maintain control over the Chinese
e-commerce company even after it becomes listed, people familiar
with the matter told Reuters.
Alibaba is widely expected to launch an initial public
offering worth more than $15 billion by the end of the year,
with Hong Kong tipped as the likely venue.
HONG KONG, July 10 (Reuters) – A record $6 billion Asia fund
announced by U.S. private equity firm KKR & Co on Wednesday will
be deployed at a time when an economic slowdown and emerging
market sell-off has knocked the overall value of Asia Pacific
corporations to historic lows.
While the market volatility should offer KKR opportunities
to buy low, the record of the private equity industry in Asia
shows that investing in the region is not as easy as it seems.
HONG KONG, July 10 (Reuters) – KKR & Co raised $6 billion
for its third Asia private equity fund, equipping the firm with
the largest such fund in the region at a time when market
turmoil is creating both opportunities and challenges for
KKR said it raised $1.5 billion, or 26 percent of the fund,
from Asian investors. That is an increase from the $908 million
it raised from the region for its first Asia fund.
SHANGHAI/HONG KONG, July 9 (Reuters) – Wang Zhiyong, the
founder of a Shanghai-based gift card company, tried twice to
get a bank loan for his business and failed both times.
So Wang turned to China’s vast network of alternative
lenders, opting for a so called “curb side” loan. Such a loan is
just one segment of the country’s shadow banking system, which
includes pawn shops, credit guarantee firms, trust companies and
other mechanisms as sources of funds for Chinese borrowers.
HONG KONG (Reuters) – The funding crunch prompted by China’s central bank was meant to teach a lesson to the Chinese banks that continue to embrace risky lending tactics.
A look at the funding and loan figures at mid-sized lender China Minsheng Banking Corp. (600016.SS: Quote, Profile, Research, Stock Buzz) helps explain why the People’s Bank of China (PBOC) made its move.