China lays out new path for cornerstones to HK IPOs

Cornerstone investors taking up huge chunks of Hong Kong IPOs have caused much controversy in recent years, but that looks set to change. China’s foreign exchange regulator has provided a new route for investing in the city’s listings, which is expected to diversify the pool of potential cornerstones beyond the typical state-owned enterprises, and friends and family investors. Jonathan Breen reports.

  • By Jonathan Breen
  • 09 Feb 2017

The new system, being implemented by the State Administration of Foreign Exchange (Safe), is based on foreign exchange quotas. It allows onshore investors to participate in Hong Kong IPOs by Chinese companies as cornerstones as long as they agree to various conditions.

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Panda Bonds Top Arrangers

Rank Arranger Share % by Volume
1 CITIC Securities 30.19
2 China CITIC Bank Corp 12.38
3 Bank of China (BOC) 11.61
4 Everbright Securities 10.84
5 China Merchants Bank Co 10.06

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Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 CITIC Securities 8,260.06 48 5.51%
2 Goldman Sachs 8,255.09 35 5.50%
3 China International Capital Corp Ltd 7,824.36 37 5.22%
4 UBS 6,618.00 48 4.41%
5 Citi 6,128.50 41 4.09%

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Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 HSBC 23,832.57 153 8.84%
2 Citi 19,977.91 128 7.41%
3 JPMorgan 16,609.75 95 6.16%
4 Standard Chartered Bank 12,715.21 93 4.72%
5 Bank of America Merrill Lynch 12,122.46 70 4.50%

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